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.

Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: jhg_in_kc who wrote (2529)	6/15/2000 11:58:00 PM
From: James Clarke	Read Replies (3) \| Respond to of 4690

jhg - welcome back, we missed ya. Seems like we haven't heard from you since tech stocks peaked. Buffett must sure be kicking himself for missing Rambus and Qualcom at twice where they currently trade. (I'm sure he does some shorting.) PWER at 73x earnings, 10 times book value...uh, no. When I look for what you called "unglamorous, unhyped stocks", I am generally a bit skeptical about those that are up 800% in the last twelve months. I'm sure this one is special. But my humble opinion is that you've got at least 75% downside risk here. But that doesn't mean I have my head in the sand. Caterpillar and Emerson Electric, both Buffett-type stocks which I own, have leading products driven by the same dynamics (Exodus and its competitors' suidical buildout of internet hosting), and they trade at a very different valuation than PWER and the other hyped "internet infrastructure" stocks. If I had any guts, or any sense that history repeats itself - or just a sense of humor - I would wait for PWER to go up another 10 points and then short the crap out of it. I'm considering it seriously. Thanks for the tip.