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To: D.J.Smyth who wrote (169703)	5/20/2002 6:41:59 PM
From: Alastair McIntosh	Respond to of 176387

Re: Stocks are not real estate. True enough, but a stock is an asset which you buy expecting the asset to increase in value. This asset has demonstrated a compound annual growth rate of just under 7% for the last four year period. It seems that the market is assigning a very high premium to this asset. Coincidentally, both the share price and the shareholders equity have grown at about the same rate over the last four years.

To: D.J.Smyth who wrote (169703)	5/21/2002 2:59:54 PM
From: mepci	Read Replies (1) \| Respond to of 176387

DJ: The real built up measurable stockholder value is SE. This is what management performance for stockholders should be measured against. SE(prev.period)+RE(current period)=SE(current period should be the guiding factor. The SE and RE should be untouchable by management unless stockholders specifically vote for it. If we are blind in paying 30 times SE in 1998, that should not be the reason to pay 15 times SE today, on a declining SE. SEG(SE divided by growth) may be a better measure for management performance for stockholders.