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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Art Bechhoefer who wrote (18691)	1/26/2001 8:25:31 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 60323

Art, I am not comparing this market with 1929, all I am saying is that there have been historical norms of total equity (market capitalization, take the Wilshire 5000) and the GDP, and going above 1.00 is a phenomenon of the last two three years. It just so happen that I remembered the actual numbers for the 1929 high and the 1970 highs of about .84 and .76, and these were both serious bull peaks. If I was comparing this market with the 1929 debacle, I would have had a target of 520 on the Naz, as i believe Pretcher has (or close to it). As for SNDK valuation, the market is king, and it may very well think that a company with no prospects of growth over the next 2 quarter should not be accorded a PE of 20 of the next 12 months earnings. That is not unusual, the market views many of the companies in the sector as "growth cyclical", and right now the market more about the "cyclical" part than the "growth" part. Finally, markets do go to extremes (like $160 early in 2000), and I see no reason it will not go to an extreme on the way down. Zeev