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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (36149)	12/7/2000 5:24:14 PM
From: Bruce Brown	Read Replies (1) \| Respond to of 54805

Depending on the extent to which an investor thinks Intel is a semi-conductor company and that semis are cyclical, the PEG can be very misleading. It's not intended to be used with cyclical companies. In fact, it's typical that near the peak of a cycle the PEG will be low and near the bottom of the cycle the PEG will be high, sending the exactly opposite signal to the investor that a PEG normally reveals. Yes. One cannot ignore the cyclical nature of the semiconductor chip equipment stocks and the semiconductors. Buy at high PEGs and sell at low PEGs I guess. Long term investors will want to take the time to view the cycle that companies like Intel and Applied Materials are involved. If one had a 5 year time horizon, the 'larger picture' would most likely help one consider entry points. Well, the stock is trading up after the revenue warning. Maybe that's what some of my other stocks need to do in order to go up - they need to warn. <ggg> BB