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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (118769)	5/14/2002 2:38:11 PM
From: jazzcat2000	Read Replies (1) \| Respond to of 152472

Some guy on CNBC this morning was saying that the current PE's are not the salient point to look at. He was making the case that "lowered interest rates" during this time have to be factored in and according to his point of view this meant that the market was still undervalued. Sorry I didn't follow his argument more closely.

To: Wyätt Gwyön who wrote (118769)	5/14/2002 4:42:07 PM
From: Maurice Winn	Read Replies (4) \| Respond to of 152472

<"When you realize the average price/earnings ratio for the last 50 years has been 16 times, you can see that the market is overvalued. The new definition shows that the valuation today is extreme." > Life expectancy is a decade longer. There is no gold standard. For those two reasons alone [there are many more of less importance], the P:E of 1960 is irrelevant today. A P:E is not like the gravitational constant and laws of physics and maths. The reasons for overall P:E are to do with how people view their prospects in the decades ahead. The world today is different from the world of 1950, meaning that people's actual lives are different. The money with which they measure those lives is different. It does not have a gold backing for example. It is on a wing and a prayer "In God We Trust" whereas it used to be "In Gold We Trust". Actually, it's "In Uncle Al and Uncle Sam We Trust". People around the world prefer to hold shares at P:E 20 than hope that God whispers in Uncle Al's ear at the right time to tighten or loosen and keeps the wacko politicians in Congress off his back. And his replacement sometime in the next few years. Not everyone around the world has great faith in Bill Clinton, GeorgeW and Senator Lott of Laughs to keep the currency on the straight and narrow. They do not trust the USA electorate to keep their cotton pickin' paws offa the printing press. I trust Irwin Jacobs a LOT more than I trust the politicians in charge of the dollar. The risk premium should be on the currency full of hot air, not the creative genius of the world's inventors and producers. With globalisation, there are rapidly developing huge markets so products with little or no marginal cost of production [such as another ASIC or software copy downloaded from cyberspace] have a major impact on growth rates. Companies don't have to cut prices and profit margins to increase sales - as China becomes wealthier, they'll buy more flash toilets, more books to read while they sit on them, more CDMA gadgets [which will be the books] and therefore Ps for toilet producers, CDMA producers and everyone else will zoom up. There has been a slight telecosmic glitch in the markets, now in the process of clearing. A missing WTC didn't help and neither does the trade war and WAT. Japan's financial mismanagement is a worry too. Globalstar mismanaging their business is another problem. Them crashing their Zenit and taking out Long Term Capital Management was a warning shot that all doesn't go smoothly on the road to nirvana, where P:E of 100 will be normal. Details, details... Mqurice P:E Police PS: I think there might be an opportunity for the apostrophe police in "people's".