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Technology Stocks : Applied Micro Circuits Corp (AMCC) -- Ignore unavailable to you. Want to Upgrade?

To: 16yearcycle who wrote (801)	10/26/2000 12:47:18 PM
From: Don Miller	Respond to of 1805

For the record folks, we experienced a comparable if not larger drop last spring. At $133/s this stock is still up 400% in 12 months, 125% YTD.

To: 16yearcycle who wrote (801)	10/26/2000 1:32:10 PM
From: ratan lal	Read Replies (1) \| Respond to of 1805

so we can be very confident in a calendar year 2002 3 bucks in earnings 2 years from now the industry will be more mature and AMCC as well ass other cos. will be eligible for p/e ratios normal for mature industries which is around 15? (unless growth is high in which case an appropriately higher p/e should preavail). At $3 per share earnings in 2002, the p/e at the current share price of 125 is around 42. Would you be willing to pay more than a p/e of 42 in 2002?? If not, then the pirc eof $125 right now is too high. If yes, then figure out what p/e u would be willing to pay in 2002, find the present value of that price and that should be your guideline for a LTB&H strategy.