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To: Bearded One who wrote (101329)	4/17/2000 9:51:00 AM
From: Bob Kim	Read Replies (1) \| Respond to of 164687

BO, I was talking about brand not brand building. The companies I was referring to were PG, KO, G, etc. Analysts routinely give them target valuations with PE/Gs well above 1.

To: Bearded One who wrote (101329)	4/17/2000 9:58:00 AM
From: Wizard	Respond to of 164687

Hi Bearded One, I have found that there is an inherent problem with PEG ratios and this is with regard to the truly differentiated growth stocks - PEG's focus on one period of earnings where dynamic companies often need to be thought of in the context of multi-year compounded hypergrowth. This is different than just increasing the growth rate in the PEG. The focus should be the E ten years from now, not the E on 2001. I have found that it is the exception to the norm but that this is exception is crucial to watch out for as that is the kind of stock that will end up making all the market cap. You may be right more often than not if you stick to the PEG rule of thumb but you will miss the gargantuan returns of the company that can deliver compounded hypergrowth - you will miss being blown up a few times for losses but you will also miss the huge multi-fold move. Catching one Veritas Software or JDS-Uniphase or Broadvision makes up for many PEG induced underperformers. This market stinks but the truly great companies will have multi-fold moves from here over time. The market, not even a bad bear market, can stop VRTS from going to $100b market cap. It may delay it but it can't stop it. Such is the power of the truly great growth stocks. My opinion only.