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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Jibacoa who wrote (7059)	9/9/2002 11:19:41 AM
From: Jibacoa	Respond to of 52153

Some other bearish comments from the people at Contrary Investing. "We're not suggesting that the world is about to come to an end for labor markets, but rather that these markets are stuck in limbo for now. Stuck in a netherworld of neither significant deterioration nor recuperation. Perhaps the most ironic implication for the financial markets over the near term is that these tepid statistics just may not give the Fed enough justification to ease interest rates near term. Despite an equity market that may be terribly desirous of such a perceptual event. Unsustainable and perhaps dangerous financial incentives reign the day. We have yet to feel the eventual backlash of allowing folks to waltz out the front door with new autos having put zero cash against the purchase. Let's be realistic, measuring the aggregate markets or specific indices such as the S&P 500 based on earnings is fraught with risk. Hence, to attempt to get beyond the issue of cyclicality a bit, we prefer to look at historical price to sales measures. Of all of the aggregate measures of equity market valuation that indeed suggest the equity bubble is being addressed and corrected, price to cash flow is possibly the most convincing." This is the link to the article. Warning: It is pretty long and has quite a few charts. <g> contraryinvestor.com Bernard