Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Forrest who wrote (8958)	4/16/2000 12:23:00 AM
From: Gregory Rasp	Read Replies (1) \| Respond to of 24042

Well there is also the issue of declining margins, incentives necessary to maintain sales, a bloated workforce, the deadweight of health benefits for thousands of retirees, tremendous competition, inferior products. I think comparing a company like GM with JDSU by any measure is sort of foolish. GR

To: Forrest who wrote (8958)	4/16/2000 12:45:00 AM
From: YlangYlangBreeze	Read Replies (2) \| Respond to of 24042

Hello people, Valuation seems to be the discussion of the weekend as we plan our strategies for what stocks we will go back into. In the short time I have been investing, valuation hasn't seemed to matter much. Sure I knew what a P/E was, they were bandied about, PEGs too, but I'd only calculated a couple, basically as an exercise. I really wasn't sure how to value a stock with no earnings. So I'm dead serious when I ask these questions. I am embarassed to be asking them even. But I am trying to learn more about valuation and about JDSU in particular. I was amazed to see that while JDSU was founded in 1983, and has shown an increase in share price of 29,000%, they still show no earnings, but that they are expected to show earnings this year. Howcan this be? What do I have wrong or what piece am I missing? Also I was amazed to see that this year's quarters are five times what they showed last year. So why does SI show a five year Expected EPS growth of growth of 48%? So is P/S the best way to value a company with no earnings? Why do people on the JDSU thread talk about having held since a P/E of whatever? Oh I hope I am not troubling people. I am not sure where I should put this topic forth. But since JDSU is my study case, here seems like a good place. Would anyone here care to help me out? joelle

To: Forrest who wrote (8958)	4/16/2000 12:49:00 AM
From: brightness00	Respond to of 24042

While GM has a much lower P/S ratio than JDSU, its product margin is much slimmer; in fact, GM routinely run up huge losses in lean years. How can anyone consider GM as a defensive play is totally beyond me. After all, the economy car segment is a money loser for GM, and luxury/SUV's are luxury goods that would have trouble selling if there were a real market down turn. Not to mention that with today's legal vultures and hyenas circling, why would anyone want to buy into a company that makes products that could potentially kill its users.

To: Forrest who wrote (8958)	4/16/2000 8:50:00 AM
From: Wyätt Gwyön	Respond to of 24042

OT Re: GM, if sales were all that mattered, my local grocery store chain would be worth more than MSFT. Keep in mind the incredibly low quality level of GM's products. For example, take a look at Consumer Reports--the section that lists the reliability of used cars by year, make, and model. You will notice that almost all the GM cars have black dots for all models and years (indicating horrible reliability). In contrast, you will notice that almost all Toyotas have red dots (indicating highest reliability). If mice weren't colorblind, you could train them based on this information to have good car-picking skills. The only thing that keeps GM's share price above its 1965 level is its satellite-TV stake. Spin that off and you're back to an era when Mott the Hoople was cool.