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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (78725)	3/12/2001 8:25:15 AM
From: Haim R. Branisteanu	Respond to of 436258

Earlie, the issue is if the assumption of TECH IS DEAD is correct. If so you are very right, and what I mean by that ........ are we witnessing over capacity in certain sectors (let go of the hype) or are we in a stage that High Tech is the equivalent of automotive industry ? or service or pharmaceutical industry P/E are above 30 there. As related to CSCO you are right, but I question the validity of other big caps who sit on substantial amounts of cash. IMHO we are not there due to the innovation of new products and relative cheapness of consumer tech items that are much more affordable than a car to most people. BTW ....... PC are the equivalent of automotive items. Sentiment is all together another matter and is extremely bearish at the moment. Haim

To: Earlie who wrote (78725)	3/12/2001 9:00:40 AM
From: wsringeorgia	Read Replies (2) \| Respond to of 436258

Haines on CNBC just went through a simple simple PE calculation for CSCO based on 60 cents earnings and "pre bubble" PE of 20 to 40 from which he deduced a stock price range of 13 to 30. He missed an important point though in that back then (95 to 97 I guess) the growth rate was fantastic; hence the 40 PE. Now with flat earnings (at best) what should the PE be? They just keep trying to make these turkeys fly don't they? WSR

To: Earlie who wrote (78725)	3/12/2001 10:24:22 AM
From: Mike M2	Read Replies (1) \| Respond to of 436258

Earlie, from the March issue of the Richebacher Letter "... That's why we share the horrible profit forecast of the Levy Institute : 'Earnings will be worse than expected in the first quarter.They will be much worse than expected inthe second. and rather than recovering, they will in all probability nosedive in the second half... 2001's fourth quarter earnings decline could be the steepest in postwar history. And 2002 may be scary." The Richebacher Letter 1217 St. Paul St. Baltimore, MD 21202