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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: chojiro who wrote (11365)	7/25/2001 7:49:56 PM
From: Robert Ling	Read Replies (1) \| Respond to of 12623

I'd like to point out that where PE is used in the context of growth companies it is more conventional to use the forward PE not TTM (Barrons & WSJ do) A PE based on TTM is not very meaningful in the valuation analysis of >>>growth<<< companies. Besides a PE number while convenient is but one metric out of many. PE based on forward earnings (S&P FY01 0.75c, CIEN close of ~$30) is 40! for a 75%+ grower(yoy) (no not future, doing it now!) You can make your own conclusions! The PE analysis says the current price is reasonable for a company growing 40% (yoy). And clearly here we have margin to spare. I've personally found that using PE solely to time stocks is a most excellent way to lose money. I'll grant that some may have had success but there were likely other factors at work (charts, instinct, chicken entrails .... whatever!)