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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (14785)	11/11/2002 12:35:58 PM
From: Lizzie Tudor	Respond to of 57684

pretty good win for matrix one mone (it appears anyway) MatrixOne Selected for Global Collaborative PLM by Global Diversified Industrial Enterprise Eaton Corporation to Drive Design Collaboration across All Units Worldwide and with Suppliers and Customers through MatrixOne Solutions biz.yahoo.com

To: Lizzie Tudor who wrote (14785)	11/11/2002 12:52:05 PM
From: Oeconomicus	Respond to of 57684

Liz, the "valuation argument" was certainly valid when everyone was pricing in everlasting boom-times a few years ago, but not now. The perma-bears ignore at least a couple basic facts. First of all, as Ken Fischer points out in a recent Forbes column (http://www.forbes.com/global/2002/1111/074asia.html), the assumption that PE multiples are good predictors of market direction is a myth. Second, trailing PEs are inflated by the "take a bath" approach to earnings reporting over the last year or so (if they are going to be bad, you might as well go ahead and take a bath to wash out everything you can and have a clean start and better earnings going forward) and are generally at their highest at market bottoms, not tops, anyway. Earnings comparisons are easy now, and PEs are coming down even as the market rallies because companies are finally reporting against those easy comparisons. Bob