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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (48843)	11/13/2001 7:14:46 PM
From: Wyätt Gwyön	Respond to of 54805

If you think of blue chip techs as cyclicals, it might help you understand my thinking OK, that's what i was after (yer thinking, not yer portfolio's mindshare -g-). i sort of agree with you that these cos are cyclical. the problem i would have with that argument, though, is that blue-chip tech cos are not priced like cyclicals; they're priced like growth stocks. the easiest way to get a handle on that is the price to sales ratio. e.g., widely recognized cyclicals like autos will often trade at 1x sales or significantly less than that (GM is well under 0.5x sales last i checked). in contrast, many tech stocks are trading at 8 to 15 times sales. this does not look like cyclical trough valuations to me.