Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Proud_Infidel who wrote (53908)	10/7/2001 11:03:46 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 70976

Brian, but you can take the ten largest in the NDX (they contribute close to 40% of the total NDX capitalization) and calculate their current PE (2 pats q and to forward q), and you get a PE of about 29, which is really not that outrageous for where we are in the cycle (namely, depressed current earnings). Zeev

To: Proud_Infidel who wrote (53908)	10/7/2001 3:31:06 PM
From: Jacob Snyder	Respond to of 70976

I agree, that it is possible to find a lot of fairly valued and undervalued stocks, in a market that is still overvalued. Any statement about "the market" is, by definition, a broad generalization that ignores what's happening in specific sectors or stocks. But, it seriously dampens my enthusiasm for stocks, when I calculate that, given the 12-month economic outlook, and current interest rates, a return to historical norms would mean a halving in the market's PE, from 33 to 15.