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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Pirah Naman who wrote (42373)	5/3/2001 12:06:17 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Pirah, I don't disagree with your comment about the non-linear nature of cash flows, so I would add it to the reasoning I mentioned about PEGs. However, ... All of this "five quarters out" or "seven quarters out" really points out the need for people to not take offered forward looking PEGs at face value, but to determine their own forward looking PEGs using the next four fiscal quarters. I couldn't disagree more. Looking at only the next four quarters makes no sense to me whatsoever for the very reason you mentioned -- that growth doesn't come in a linear fashion. The numbers can be too skewed over such a short period of time. --Mike Buckley