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: Mike Buckley who wrote (42326)	5/2/2001 2:26:34 PM
From: straight life	Read Replies (1) \| Respond to of 54805

"...As an example, when the stock was at $120 (about 150% higher than the current price) the Fool Ratio was very similar." Not familiar with Fool Ratio, but what happened to make $120 and $48 so similar? Analysts numbers on the future of SEBL going down? ps- I sell basically on rule 10 violations; but I'm willing to hear and learn, so TIA.

To: Mike Buckley who wrote (42326)	5/2/2001 2:40:21 PM
From: BirdDog	Read Replies (3) \| Respond to of 54805

...keep such issues about valuation at the forefront May I discuss this with you in the context of your "Ruleof5" peg ratio? If so... would the rule be another absolute? Or would other factors be taken into account? Fact One) The market tries to invest ahead of the news. Right now looks bad, and everyone knows it. But forward looking in the next 6 months looks great. Fact Two) The p/e is due mainly to analyst's estimates. Fact Three) The stock price is way below any recent highs. Fact Four) We're just barely comming out of the bottom of a huge drop in the market. Fact Five) GS just took the second suprise rate cut in 4 months. The fed appears to be on a sustained cutting spree. This just keeps helping the economy and this company's market. In other words.... This present situation might not warrant selling sebl with a peg of 5? I have to admit. I would expect selling at such a peg when the company is at it's all time high and can't see an increase in present growth rate for months or perhaps ever. BirdDog

To: Mike Buckley who wrote (42326)	5/3/2001 12:37:33 AM
From: DaYooper	Read Replies (2) \| Respond to of 54805

Mike, I don't recall how the "Fool Ratio" is different from the standard PEG ratio but something is certainly different. As I recall SEBL earned .54 in the latest fiscal year. At a price less than $54.00 the PE is under 100. The long term growth rate is forecasted somewhere between 50% and 100% deriving a PEG between 1.00 and 2.00. Where does the 4+ ratio come from? -- an overly-conservaive growth forecast of only 20 to 25 percent maybe??? Or some other peculiarity of the "fool ratio"? Rory