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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (53616)	10/3/2001 11:49:03 AM
From: michael97123	Respond to of 70976

Jacob's rally begins??? See you at the close. That boy knows things the rest of us just guess at. mike

To: Jacob Snyder who wrote (53616)	10/4/2001 12:04:38 PM
From: Sam Citron	Read Replies (2) \| Respond to of 70976

RE: Difficulty of computing PE of Nasdaq 100 Valuing the Nasdaq Composite Index is tough, due to the huge number of stocks and lack of earnings data. Obtaining a price-to-earnings ratio for the Nasdaq 100 index is much simpler. Detox calculates that the Nasdaq 100 is trading at 73 times 2001 earnings forecast by Thomson Financial/First Call, and 42 times expected 2002 earnings. That's frightfully expensive. (Note that the Nasdaq 100 is a weighted index. This means some companies' index weights are higher than their market capitalization, and vice versa. If you adjust forecast earnings to bring them into line with index weights, as one should, the 2001 P/E goes up to 103, while 2002's jumps to 52.) Many have talked about valuations coming down as earnings rebound in 2002. But the 2002 estimates used here already are predicting a rip-roaring recovery. Weighted aggregate Nasdaq 100 earnings are expected to be $25 billion for 2002, nearly double the $13 billion forecast for 2001. (Unweighted earnings are targeted at $18 billion for 2001 and $31 billion for 2002.) source: thestreet.com The Rout Is Far From Over for Tech Stocks By Peter Eavis 9/27/01 thestreet.com