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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Harry Landsiedel who wrote (102329)	4/14/2000 12:47:00 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

Harry, RE: If these assertions are true, assigning a PEG higher than 1x is "assuming" that the market will misprice a business. While this is worth hoping for, when it is planned for it is speculation, not investing IMHO. No, that is just not true. Please go back to the basis of my argument. When the market's expected return for a business is lower than the growth rate of cash flows (or earnings, depending on your faith in earnings) then the PEG must be greater than 1. This is not a mispricing, this is how discounted cash flows work. For a business with a high, predictable growth rate, this happens all the time, not just in the times of market bubbles.