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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (4234)	3/25/2002 3:26:47 AM
From: Dave Gore	Respond to of 16631

COMMENTARY --- OK, this article is a nice reminder that technology may not be the place to park money in 2002, but for short term trading, the volatility often creates temporary good R/R (reward to risk) trades. We must not confuse the two. The current market almost begs short term trading rather than intermediate or long term holds. When most of us make a suggestion as a trade, we are mostly talking about a short term one. OVERVALUED TECHS "Intel's market capitalization has exploded to $221 billion, regardless of the fact that worldwide sales of semiconductors amount to only $139 billion. While Intel's sales inched up just 1 percent from 1998 to 2000, its stock now trades at 8.3 times revenues. Another example of irrational pricing is Applied Materials, which has a market cap of $41 billion even as global sales of semiconductor-making equipment amount to only $28 billion." There's more. While Microsoft's revenues climbed 36 percent, or at a rate of 13 percent annually over the last 2 -1/2 years, the earnings of the giant software maker have shrunk. But Microsoft's stock still trades at a whopping 13 times revenues and 57 times earnings. The incredible valuations show that investors still believe technology companies will continue to have spectacular growth ahead of them, says Alan Newman, editor of CrossCurrents, a financial letter. ENTIRE ARTICLE siliconinvestor.com