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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: High-Tech East who wrote (44445)	8/14/2001 7:52:50 PM
From: David Howe	Read Replies (1) \| Respond to of 64865

<< Investors are hoping that earnings will quickly recover to their 2000 levels, he said. But history shows that profits do not simply yo-yo back after a drop like this year's, he said. At a growth rate of 25 percent annually — far above historical averages — technology earnings will not surpass last year's levels until 2005. >> Is it really so bad if it takes several years for earnings to recover? Wouldn't someone be quite pleased to buy today and by 2005 have earnings and stock prices (in some cases) back to where they were at the peak? If so, why the heck would you sell now? << It will take at least several years before companies like Cisco and Oracle recover fully and enjoy the profit margins and earnings they did at the peak of the millennial boom, they say. >> Bid deal. Sounds like a great reason to buy right now. Maybe PE's don't get to where they were, but with EPS back to the peak, the stocks will recover quite nicely, IMO. Great investment for the next few years. I know the counter arguments to my points above, but it is interesting that the "skeptics" think EPS will recover in just a few years. That sounds optimistic to me and a reason to be invested at this time. Dave