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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Greg h2o who wrote (12549)	7/5/2000 5:32:20 PM
From: The Prophet	Read Replies (1) \| Respond to of 60323

That quote, and your snippet, do not make it so. A stock growing at a 200% clip, but trading at a 40 p/e is already pricing in dramatic slowing. To make it easier for you to understand the math, here are the earnings and p/e ratios in this context, with growth at 200% and growth at 40%: 200% Growth Year Earnings Current p/e (with SSTI at 83) 2000 2.00 41.5 2001 6.00 14 2002 18.00 4.5 40% Growth Year Earnings Current p/e (with SSTI at 83) 2000 2.00 41.5 2001 2.80 30 2002 3.92 22 The point is, the street is already pricing in considerable slowing in growth. If I had to bet, and I do, I'd bet that we do not slowdown at anywhere near the rate priced in already. Time will be the proof. Kapish, mon ami? eom