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: Bruce Brown who wrote (40367)	3/13/2001 11:14:58 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>> Is Qualcomm's TTM PE ratio really 348 or 360 or whatever it is a quote service will dish up at the moment?" The sum of proforma earnings for the trailing 4 quarters was $1.07, which is a p/e of 44.9 based on yesterday's disgusting closing price of 48 1/16. uf

To: Bruce Brown who wrote (40367)	3/13/2001 11:56:01 AM
From: Judith Williams	Read Replies (2) \| Respond to of 54805

Bruce-- I'm aware that KO's PE is around 38 or so if one-time charges are taken into account and also that management predicts an improvement in the earnings growth. But the company's PE is widely perceived to be around 60. Similarly there is broad belief that Qcom's PE is in the stratospheric range over 300 and that JDSU has no PE because it has no earnings. In a time of "shoot first, ask questions later," perceptions like these, however faulty or unfounded, matter. My point was less about PE per se, than the apples and oranges issue of making cross-sector risk/volatility comparisons without taking into account differences in earnings and revenue growth rates. Whether KO's PE is 38 or 58, a potential investor is paying a lot for presumed safety. That tradeoff is simply not one that is compelling to me. I would argue that a Qcom or a Sebl offers more safety over the long haul--even if you get heartburn multiple times along the way. And then there is the entertainment factor. Does KO offer a virtual who-done-it? Sugar water doesn't give you an intricate plot, nasty and rich villains, a bunch of papparazzi out for blood, and a beleaquered hero fighting against all odds. Perhaps Chan or Levy could figure out a way to get the EF into intangible assets. --Judith

To: Bruce Brown who wrote (40367)	3/14/2001 2:26:57 AM
From: tekboy	Read Replies (1) \| Respond to of 54805

Since your middle paragraph needed a translator, I brought in babelfish from AltaVista. Here's how it came out put into German, then French, then back into English. MUCH more comprehensible, I think: "If those do not avoid with the periodic loadings for 1999 and 2000, EPS, dig standardize that by which a tax structure, visit the choice $$E, to lower the 40 a few day old contents odd to 34 days, with the guide management to consider it after 15-20% EPS the growth this fiscal year, see the new estimates agreement of $1,71 per 2001 EPS and you find the FART TTM are in the annéeees thirty years and the FART envisaged is 29 and to modify founded on a price of share of $51." tekboy/Ares@gigo.com PS I thought "FART envisaged" was especially memorable; could serve as an epigraph for the graph of Y2K...