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To: yard_man who wrote (149112)	2/5/2002 9:45:07 PM
From: pater tenebrarum	Respond to of 436258

well, using NEM as a proxy, it's p/e actually FELL from about 100 at the beginning of the move to the low teens at the top of W3. it had a huge wave 5 up though, much larger than the final advance in the XAU (Soros was involved in the stock, and there was even an attempt at a hostile take-over if i remember correctly)and in that up-wave the p/e expanded again to about 25. earnings continued to grow, but the stock price grew even faster in the final move up. this is actually normal for cyclical businesses: the p/e's are generally higher at the lows than at the highs. so saying that Harmony has a low p/e is really just saying that the business is doing well right now. p/e expansion will come when the market becomes convinced a higher PoG is going to become a permanent feature and the company can do no wrong - it will be a sell signal of sorts.