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To: Mike Buckley who wrote (42325)5/2/2001 11:09:12 AM
From: Mike Buckley  Read Replies (3) | Respond to of 54805
 
Thanks to a Fool who regularly compiles valuation ratios in the Fool's GGame folder, I was just made aware that Siebel's Fool Ratio using analysts' estimates and a stock price of $48 is a whopping 4.95. For all of you who now have a stronger interest in valuation thanks to the excesses and subsequent declines in high-tech stocks, read that again: Siebel's Fool Ratio using analysts' estimates is a whopping 4.95.

I've got some ideas about that. In the interest of fostering a learning experience from this set of circumstances, rather than immediately voice my opinions I'd much rather toss the fact out for discussion. Regardless of what I think, such an extraordinarily high Fool Ratio typically is a bright red flag indicating extreme short-term risk that the stock will fall in price. As an example, when the stock was at $120 (about 150% higher than the current price) the Fool Ratio was very similar.

Remember that I vowed to keep such issues about valuation at the forefront. I'm just doin' my job. :)

Now, about that discussion. Who's gonna be the first one to toss out an idea about Siebel's current valuation? I think we can learn a lot from this particular situation. Prove to Pirah :) that there really is a stronger interest in valuation.

--Mike Buckley