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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (15295)	12/4/2002 12:53:14 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 57110

>>I'm having a tough time with the valuation argument in general now because many of my companies are trading for cash or close to it. Sure the p/e is sky high and that is skewing the indices they trade in. Thats the real reason the valuations are high here imo... cash levels. Here we are in an easy money environment within a bear mkt - not like 32 or the 70s when companies really had no cash.<< hi lizzie... they may be trading close to cash but the real question is for how long? co's go through cash quickly if there just isn't enough top line growth. i think the hope is right now that we can muddle through long enough for the sales to pick up. or....put another way....hope the cash , layoffs, and cost cutting holds out long enough. the valuation is price to earnings for a good reason....if co's are standing still, they are losing ground.