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.

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

To: Jenna who wrote (3731)	2/4/2001 4:03:39 PM
From: Jenna	Read Replies (1) \| Respond to of 6445

BARRON'S: Up & Down Wall Street on CSCO, ORCL, SUNW and EMC marketgems.com John ( Investment Research & Insight)has been cool lately on high P/E stocks. He laments that what he calls the glamour tech stocks -- notably Cisco, EMC, Oracle and Sun Microsystems -- are still wildly overpriced, even though they're down sharply from their highs. For these four horsemen of the tech sector, he warns, even a return to median bull-market valuations -- that is, their median valuations from '91 through '99 -- would be disastrous. And he goes on to calculate those valuations by multiplying current revenues per share by the median price/revenue ratio during the '91-'99 stretch. The price targets he comes up with are 18 3/4 for Cisco; 4 1/2 for Sun; 10 for EMC and 6 7/8 for Oracle. Need we say that last Friday's close for each was considerably higher.