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.

Non-Tech : QQQ - Nasdaq 100 Trust -- Ignore unavailable to you. Want to Upgrade?

To: Topannuity who wrote (463)	12/22/2000 9:43:29 AM
From: Barnhart	Respond to of 840

Another issue here is that the stocks in the Nasdaq-100 index and the shares that are combined into the QQQ are not represented on an even basis. There is more MSFT and CSCO and INTC in one share of QQQ than say AAPL, NOVL and COMS. Because the index and QQQ have weighted entries, it makes the PE calculation more difficult. I don't know what they weighting is, but I suspect someone else can find it (I'm on vacation and don't have time). Brian

To: Topannuity who wrote (463)	12/25/2000 12:23:15 PM
From: smchan	Read Replies (1) \| Respond to of 840

One problem with calculating the average P/E, I think, is all the stocks which have 0 P/E. My understand of P/E is that a lower P/E is good (assuming we have good growth, etc) as long as the P/E is positive. It seems all the 0 P/E's would pull the average down and the number would be misleading. Rather than a weighted average of the P/E's, perhaps we should tally a weighted sum of the EPS from which we could derive a P/E for QQQ. It seems easy to do if the data is available: total = total + (EPS * no. shares in 1 share of QQQ) to get the EPS and then price QQQ/total EPS to get the P/E. Make sense? Happy Holidays, Sam Edit: I just re-read some of the thread and realized I probably said the same thing Brian was putting forth in his post: siliconinvestor.com My apologies for the duplication!