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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Voltaire who wrote (26559)	12/20/2000 9:33:15 PM
From: t2	Read Replies (1) \| Respond to of 65232

have always felt PE's are the most overrated number in the investment community. They only mean something when the Investment Institutions want them to mean something. Sure, they are in vogue now but there were billions made when the were not in vogue. Only thing wrong with a high PE is if people won't buy it and that is about to change after the first of Jan. The problem is that the "E" in PE is at risk according to lots of experts. That is partly why we are getting our selloffs. Not all companies. The higher the PE, the greater the risk of a big drop on bad news. I think this is only a temporary thing for another week or so. Too many PC related stocks have stolen the show from the good stocks. Their warnings have hurt all of tech. The warnings seem to be concentrated around PCs AND the AT&T and other carriers. In addition. I believe the profit warnings have been pretty bad in part because companies realize this is the best time to announce. They are taking the opportunity to guide lower. Notice NT did not lower guidance and its stock gets hit anyways. That is example of the wrong thing to do, IMHO. Lowering guidance clears the stocks for moves upwards.