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.

Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: FR1 who wrote (9496)	11/4/2001 10:03:36 PM
From: techanalyst1	Respond to of 57684

You are misunderstanding me. While I "think" that the bottom is in fundamentally (revenues) on amcc, and quite possibly csco, that doesn't mean that they will go up and break from their ranges. Even at the lower end of where I think they will be, the stocks are NOT value plays and at the top they are quite expensive. My views on the companies probably being bottomed out fundamentally, says nothing about valuation. Amcc is already at a p/s of 14.5 or so plus cash. If we take what David Rickey thinks will be revenues once growth does return, then it's at a p/s of 8.25 plus cash on hand at a stock price of 13 (well within it's range). Unless you think that it deserves a higher valuation than that, then there just isn't a considerable upside over recent highs. They could be range bound for 6 months or longer. Anyone buying at these prices may see little to no gain in a year. It all depends on what kind of valuation the market wants to give stocks and how long they take to grow into their valuations. Your guess is as good as mine, but I will continue to do what I've done in the past, and that is hedging my positions if they get to ridiculous valuations. TA