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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Topannuity who wrote (70319)	2/23/2001 10:40:12 PM
From: GST	Respond to of 99985

A couple of things on the p/e of 32. As profits fall this year, the collective p/e goes up. We don't know the future profit picture, except to say we are told it is "bleak". Thus, the calculation you quote uses the most generous assumptions: companies losing money don't count and companies facing declining earnings don't count -- unfortunately most of the Naz 100 companies fall into one of these two categories.

To: Topannuity who wrote (70319)	2/24/2001 3:04:59 AM
From: DukeCrow	Respond to of 99985

That PE calculation is ridiculous. No respectable research organization would use those methods. Ali

To: Topannuity who wrote (70319)	2/24/2001 3:44:04 AM
From: TobagoJack	Respond to of 99985

Hello Topannuity, Do not forget to adjust the E for the channel stuffing, option accounting, pooling accounting, full dilution and reset affects of options, the bad debt adjustments, ... , and oh, did I forget to mention adjusting down P for lowered expectations for the DOW, so as to make the Nasdaq 100 look even more bloated than it already is. Many maestro believers are hopeful, and may even be right for a little while, for no obviously good reasons, positioned to be right only, and not hedged to be wrong. Message 15404590 Message 15403697 Chugs, Jay