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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: ownstock who wrote (23204)	12/26/2002 6:25:26 PM
From: Cary Salsberg	Read Replies (2) \| Respond to of 24042

RE: "With all due respect to another poster, P/S does not correspond to anything wrt P/E ratio." In deference to "all due respect", PE = P/S multiplied by (1/ the net margin). Net margin is the ratio of after tax earnings to revenues expressed as a per cent. Most quality tech companies fall between 10 and 20% net margin. If JDSU had a net margin of 10% a P/S of 6 would correspond to a PE of 60 (6 multiplied by (1/.1) or 10.) Of JDSU had a net margin of 20% a P/S of 6 would correspond to a PE of 30 (6 multiplied by (1/.2) or 5.) In his 1987 classic, "Super Stocks", Ken Fisher, Forbes columnist, money manager, and son of investment legend Phil Fisher, introduced the use of P/S. P/S is useful because revenue is less volatile than earnings when corporate or economic hard times hit and the above analysis allows for future earnings estimates and PEs.

To: ownstock who wrote (23204)	12/26/2002 6:36:11 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 24042

Don and Jozef are leaving. Their end dates are set but not announced. If there ever was such a thing as an officer of the company saying the party is over, that is it. Really?! GREAT NEWS! (if true) Actually it doesn't always mean the party is over when the CEO leaves. Look at yahoo last year as an example. In this case maybe moral will rise with Josef gone, at least there will be fewer insider sells. I have found P/S to be useless for companies with so much cash, btw. The bearish argument is that no=profit companies will burn through all their cash, but in most cases that isn't reasonable. The best thing is to net out the cash and THEN look at the P/S... the old "enterprise value" argument. jmo. Lizzie