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 : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (39292)	2/15/2001 11:32:28 AM
From: Bruce Brown	Read Replies (1) \| Respond to of 54805

BB, thanks for putting some PE valuations in perspective. Very valuable insight. No problem. Most traders could care less about valuations as long as there is some 'action' to be had on either side of the trade. Yet, it is perplexing to see some very low EPS, dividend and revenue growth stocks receive way higher multiples than what a valuation junkie would say they deserve. Especially in light of Geoff's comments. If General Electric were trading at a P/E of 15 to 20 and Intel was trading at a P/E of 40 or 45 I could say "okay, I get the point". If I see a grocery store chain that has profit margins of a few pennies on the dollar trading at a P/E in the mid 20's and Intel with much higher profit margins on the dollar trading at a lower P/E multiple, it is hard for me to say "okay, I get the point - let's correct the gorillas until everyone is screaming value". Of course, we could say the same was true for many, many technology stocks when they were at much higher multiples - so it is a market indicative problem, rather than a specific sector problem. BB