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To: patron_anejo_por_favor who wrote (112587)	7/13/2001 11:49:33 PM
From: Perspective	Read Replies (2) \| Respond to of 436258

What I'm talking about is an easily computed alternative to PE ratio. Compute the change in "net equity" - shareholder equity minus paid-in capital - then divide market capitalization by this number. It yields price to equity generation very quickly, and avoids all the manipulation of the data. Forget the horsepucky proforma numbers from Sickso - look at their equity generation. They've managed to destroy $4.4B in shareholder equity in the past nine months. Granted, much of that came through marking down assets, but unless they are carrying them well below actual value, the destruction is real. And in the peak year of the mania, ended July 2000, they managed to generate a whopping $5.5B equity. Considering people were paying $500B at the time, it was quite steep indeed. The previous year, they only kicked out $2.2B equity. So, they've created +2.2B +5.5B -4.4B, or just 3.3B in shareholder equity over the past three years. Hardly seems like they should have ever fetched even $100B from that perspective. BC