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

To: Jack T. Pearson who wrote (73471)	3/28/2001 7:10:35 PM
From: iod_sherwood	Respond to of 99985

agree... I think CSCO might even ponder a reverse split later in the year when it's trading in the 9-13 ranges... As will possibly several other tech companies... I'm not that big a fan of JDSU... the other two are ok... Might be a good place for some alternative energy bubbling later this year... investment bankers would probably love to do a few big secondaries for ACPW... CPST maybe... u know... continue the scam elsewhere ;-)

To: Jack T. Pearson who wrote (73471)	3/28/2001 7:53:55 PM
From: Doug	Read Replies (1) \| Respond to of 99985

J.T.P: You should also compute both PSR and PCF for both time periods to establish valuation at times like this.

To: Jack T. Pearson who wrote (73471)	3/28/2001 9:04:02 PM
From: brunn	Respond to of 99985

SCMR's P/E is 28 based on earnings projections for the current fiscal year (7/01) if you subtract their billion dollars in cash from share price. They have $3.57 in cash per share. Subtract 3.57 from 10 and divide by 23 cents and you get P/E of 28. Market is obviously questioning the validity of their earnings projections but Sycamore may become a world class company some day and getting it at a little over book value may seem like a steal someday. Last November, I noticed the correction in many small cap equipment stocks met resistance at book value--assuming that the book value had inherent value (e.g. cash). Brooks Automation was an example. I used it as a gauge for a bottom for the overall sector--the AMAT's and NVLS's never coming close to book value but bottomed when MTSN and BRKS approached book value. I guess the problem with buying high tech at book value is the possibility of losses/charges eating up that value.