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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Peter Church who wrote (259)	5/17/2000 5:00:00 PM
From: 16yearcycle	Read Replies (1) \| Respond to of 57684

A peg of 2.0 on current e pace for leaders has been normal for as long as I remember. For non-leaders, you get closer to 1.0. The roe is critical though. Yhoo has a tremendous roe, while something like Flex doesn't. By March, the warning horns were blaring as the leaders had gone to peg ratios of 3.0. We are back in line now. This is a metric that i use and i get in trouble when I ignore it. I don't know if there is general agreement on any yardstick. For example, the value guys might think I have been nuts the last 15 years, yet they were wiling to buy something like Ko at a pe of 30+ with revenue growth at 3% and e growth of 12%. To me that is nuts.