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.

Technology Stocks : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: BI*RI who wrote (3463)	8/3/2000 3:35:33 PM
From: ratan lal	Read Replies (1) \| Respond to of 10713

At a P/E of 115 or so annual earnings growth is outpacing trailing P/E. If there is any reasonable outlook for this kind of ratio to be sustained for a while, I think the price of the stock has to considered a good bet. PS made the above proposal which leads to a fair price of 100 for CREE. Youa re making the following proposal: Well, 15% sequential growth quarter to quarter is 75% annual growth, For which a P/E divided by growth ratio (PEG) of 2 would be reasonable for me. Thus a P/E for next year earnings multiple of 150 is indicated. Therein lies the volatility. I am sure people keep changing their mind regularly to add to the volatility. ANd of course there are the MOMO players to agravate the situation further. So how does one decide what to pay fro CREE. I would think the best bet is to wait for the price to stabilize (as it surely will) and reach an equilibrium before jumping into it, even if one has to pay a higher price than currently available.