To: JHR who wrote (13665 ) 7/21/2000 6:17:16 PM From: Thean Read Replies (1) | Respond to I would also add that the street is no longer looking just at future potential and quality of earning but is very concerned about the need to reallign with total earning outlook going forward with forward growth rate. This basically says we are going back more and more to the historical model of evaluating companies where PE does matter. The sectors that are particularly exposed in this shift is of course the high tech sectors as their high valuation is beginning to be seen as not a momentum driver but rather a drag to the timescale to achieve full upside target. There are only a handful of tech companies which can command ultra high PE now. For now, AMCC, PMCS and BRCM are still three of the creams but I would rather bet on their days being numbered than their ability to sustain the mo-mo. Wouldn't it be nice to short QCOM when they were at $800 pre split? When QCOM peaked, it had the best mo-mo money there was to carry it with fantastic stories about their invincibility everywhere. Hope LT laughed all the way to the bank on this one if he had the gut and luck to pull a QCOM short at that time.
