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To: Softechie who wrote (68372)	8/18/2002 3:34:31 PM
From: ChrisJP	Respond to of 208838

Hi Softechie -- thanks. I get a current S&P 500 PE of 28. I agree -- a little on the high side. Here's how I came up with it: 89% reporting earned 7.39, that means 100% reporting earned 7.39/.89 = $8.30. Times 4 = $33.20 S&P 500 = 930 so 930/$8.30 = 28. But aren't the last companies to report nice earning retailers ? Lowe's and Home Depot alone are expected earn about $1. So maybe the S&P 500 will earn $9 this quarter or times 4 = $36. That would give the S&P 500 a PE of around 25. as you can see, I'm not a believer of the "big bang" earnings recovery in the 2nd half of 2002 either. With 5 - 10 year bonds yielding 3% - 4%, and with the S&P 500 yielding (so I've heard) something like 1.5%, a PE of 25 IMO is fairly valued. Of course all disclaimers regarding the rate of unemployment and so on apply. All I know is TALK is gonna earn .40 this year, it's at $3. DVID could earn .50 this year, it's at $3. MTON will earn over $1 this year, it's at $12. APT could earn .8 - .12 this year, it's at .85 For those you who like to gamble instead of trade, I bought some OCCFD cuz of the recent insider buying at twice the current price ! Regards, Chris