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.

Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: John Cuthbertson who wrote (9769)	4/20/2001 9:07:51 PM
From: Kirk ©	Read Replies (1) \| Respond to of 10921

no, no, no... My method is correct. I just assumed the top 11 companies were a single entity. Consider QQQ ONE company with 100 divisions if you want. I sum their market caps and sum their TOTAL earnings then divide. The $2,780,171,450 loss for VTSR subtracts from the $9,643,752,000 earnings of MSFT. This WILL give lower overall earnings and thus a higher P/E as it should. It is the ONLY way that makes sense. Operating earnings vs write-offs.. That is where securities analysis becomes an art... Make the right assumptions and you can find the gems in the rough. Kirk

To: John Cuthbertson who wrote (9769)	4/21/2001 2:02:21 AM
From: Kirk ©	Respond to of 10921

OK, I did a full program that did all 100 companies and it gives a p/e of 168.8! What is really interesting is the p/e slowly works its way to 60 then goes bad really fast if you sort by companies that lost more money last year than they are currently worth! So, going forward, it would be impossible to lose as much money again! Take CMGI for example. It lost $4.85B and has a current market cap of $1B! IF you project for next year, you would assume that CMGI won't lose $4.85B again as it doesn't have it to lose! I guess the real answer is there is no clean way to calculate this when the losses are so huge. Then again, I doubt CMGI has any value to QQQ so it might be best to toss all companies that lose more than a certain fraction of their market cap? Interesting exercise for sure! Thanks for your comments. Kirk out