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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: zonder who wrote (7344)	11/29/2002 1:15:01 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 95487

I would not say that cash levels "skew" P/Es or anything. Of course then you also take into account the debt levels of a company. How can that be? These stocks would be trading for much, much less if they weren't sitting on cash hoardes. Remove the cash, and you'd get your historic PEs from bear troughs. Debt is not an issue for many software or comm equipment companies (although it is for telecom services I agree). Imo this cash situation casts a thorn into the overvaluation argument and I haven't heard any adequate rebuttals to the contrary- there still may well be individual companies that are overpriced but the NDX index averages are the oft-quoted figures. Lizzie