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Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (18277)	1/11/2002 8:18:39 AM
From: rogermci®	Respond to of 19633

"tech looks less expensive when compared with the early 90"s" just before we embarked on the biggest tech explosion of all time. I hardly think we're on the cusp of that situation again.

To: Tom Hua who wrote (18277)	1/11/2002 9:57:20 AM
From: Brad Davies	Respond to of 19633

Tom, I think almost all tech valuations are ridiculous. Tech should trade on lower multiples than other industries, not higher ones. Of course, very few of them have any earnings to apply a multiple to. The risk of failure or obsolescence is far higher in tech, and the multiple should be lower, to reflect that risk. Paying for growth on the if/come is foolish. That is why none of these companies are "bankable", and rely on the capital markets for all of their financing. Profits... are the real bottom line. We will eventually return to a market that trades on a reasonable multiples, but we have a long way to fall yet, in my view. Brad