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 : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (35965)	5/13/2002 2:33:17 PM
From: Killswitch	Read Replies (1) \| Respond to of 52237

I wonder if you calculated the previous 50 years P/E ratios using this new method, would they still be 15 to 16 on average? If they wouldn't then trying to compare them to this new calculation is pretty useless isn't it?

To: John Pitera who wrote (35965)	5/13/2002 2:46:59 PM
From: Robert Graham	Read Replies (1) \| Respond to of 52237

Expensing employee stock options in the income statement? Is this a properly accepted accounting practice? IMO it can lead to some terribly misleading income statements. Besides, stock options are monies the company generated from its "printing press". IMO this has no relevance to the bottom line of a company's financial statement. Looks like the market is putting in some good swings within a trading range. Bob Graham

To: John Pitera who wrote (35965)	5/13/2002 2:47:23 PM
From: pvz	Read Replies (2) \| Respond to of 52237

John, why do you say the market is too expensive from a macro point of view? I can see the valuation being too high because of the discrepancy between operating and as reported earnings and also when the 10 year yield starts moving up from here. If future earnings come in far short of expectations, there will be a problem. Also, many of the individual components have unjustifiably high valuations. However, using current assumptions and yields, the market is about fairly valued. I don't have numbers going back before 1988, but for much of the time since then, the market has generally been overvalued using this methodology, which makes me think it isn't too bad right now.