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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: Don Pueblo who wrote (1692)	1/14/2001 4:46:14 PM
From: Jenna	Read Replies (1) \| Respond to of 6445

RBAK earnings out january 17 P/E is now 968.3 EPS estimated $0.04 DHI earnings out January 19 estimated $0.68 has a P/E of 7.4, Return on Equity is 19.7 while the ROE of RBAK is -12%. This post explains the cycle. Message 15180431 It is just my own opinion that every rally where the 'favored' stocks like CIEN, JNPR and those others I posted brings up the blimps to even higher multiples and this being perched on the precipice will unlikely to hold up following earnings reports. I enjoy going long these blimps during rallies like anyone else but I'm still awaiting the axe to fall when some are returned back to more palatable price levels after the earnings season (near end of January).. By then we will have freshly corrected stocks that might be worth a nod but until then rallies pull up multiples and we are getting back where we started in those once 'cash cows' in the tech sector. They were cash cows to the short side this last quarter, and for them I don't think there is a bottom until their multiples compare with others in their sector. Technical analysis will help point out those that are the worst hit and are about to rebound to cycle 1 but there are still many in cycle 4, the selling cycle and you might not find them through TA alone. When earnings come out for these blimps TA will tell you they are in bullish range engulfing moves, above minor resistance, testing this and testing that but in the final analysis its the lack of earnings that will decide where these stocks are headed and not TA.