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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Cary Salsberg who wrote (45846)	4/24/2001 12:32:25 PM
From: kdavy	Read Replies (2) \| Respond to of 70976

Is there such a thing as the intrinsic price of a stock. What is AMAT (or for that matter any other stock) worth? I personally believe that there is no such thing as proper valuation or right price. It is just supply and demand (Point and Figure theory). Therefore, PE, PS, B2B and all other parameter don't really help in choosing the direction of the stock price. If there is a way to assign an intrinsic value to a stock, I will like to hear/discuss. According to may way of thinking there is no universal rule to indicate when to buy and when to sell. Just try not to lose money. Don't hold a stock in a downward spiral. Don't be afraid to pay taxes. We should use whatever method works. kdavy

To: Cary Salsberg who wrote (45846)	4/25/2001 2:11:29 PM
From: Kirk ©	Read Replies (1) \| Respond to of 70976

On Valuation and Nasdaq100 P/E I have a macro+program that keeps track of the 100 stocks in the Nasdaq100. I sum their market caps and sum total earnings and then calculate P/E for the top 40 and for the full 100. This ignores effects like the actual Nasdaq100 index gives some profitable companies like Intel and MSFT only 50% weightings in their index so I might be over stating significantly the P/E. I have posted a table of the results here: suite101.com This is only the earnings as reported by Yahoo! so it is actual earnings rather than operating earnings but this actually makes sense given some companies like CMGI and AMZN were (note were) in the business of losing money. They will EITHER change their business model or vanish from this list. You can subscribe to this thread and get an email when I post updates there. Use this URL to subscribe: suite101.com My method is not perfect and I keep finding little bugs (such as a few companies dropped below $1B in market cap and I had to do a logical text search/replace rather than assume all market caps returned by Yahoo ended in $B).. so with that disclaimer that there could be more bugs... I actually think looking at the top 20 stocks in the index might be more worthwhile.... since many below that (by market cap) might be gone soon. Kirk