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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (63340)	11/29/2000 2:15:56 PM
From: Bruce Brown	Read Replies (1) \| Respond to of 99985

There is nothing wrong with "paying up" for good stocks that have long growth tracts ahead of them. But it is nuts to pay 200-400 P/Es based on earnings projections. How about a P/E of 400 with full year, y/y revenue growth of 416% and EPS going from -.35 to +.36 in the same time frame? What kind of valuation would you put on a company like that? An average P/E of 28 or 20? I should throw in the mix that the company will report shortly which will naturally change the TTM P/E ratio depending on the number that comes in... BB