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To: ratan lal who wrote (91081)	1/2/2001 9:35:04 PM
From: alburk	Read Replies (1) \| Respond to of 152472

Frankly if I was going out to buy a company, i would not pay more than what I can earn back in 2 years. That would mean a p/e of 2. What would you sell a company for if you had one to sell? Obviously you don't, but I'm curious?

To: ratan lal who wrote (91081)	1/2/2001 10:32:48 PM
From: Jacob Snyder	Respond to of 152472

re: I was going out to buy a company, i would not pay more than...... a p/e of 2: There are actually a lot of stocks available at such extremely low PEs. You have your choice of: 1. steel companies that have been losing market share for 20 years in a no-growth market 2. retailers like Montgomery Ward (until they file for bankrupcy) 3. Mobile Home manufacturers sinking under a mountain of very low-quality mortgage portfolios, with sales lots full of repossesed inventory. You get what you pay for.

To: ratan lal who wrote (91081)	1/5/2001 7:13:34 PM
From: firstflight	Read Replies (1) \| Respond to of 152472

Isn't the theory that a stock is worth the current discounted value of its future earnings stream? But unless the company is unlikely to be around after 2 years, why cut the earnings off at that point. It seems to me Cisco is likely to be around a long time, but the size of the future earnings stream is hard to figure, not that it obviously won't be higher than todays. Who would be willing to sell there shares for twice current earnings in any company, unless that company was about to go under permanently? Can you find any companies that are attractive on this valuation basis?