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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (151101)	12/30/2002 12:56:49 AM
From: fedhead	Read Replies (2) \| Respond to of 164684

We have had 3 years where the market indices have closed lower. Yet most strategists think that the indices will end higher in 2003. The level of complacency is astounding. The markets look like they are ready to resume a new downleg. If I had bought at the October lows I would be locking in gains before the market takes it all back and then some. Anindo

To: Lizzie Tudor who wrote (151101)	12/30/2002 12:25:38 PM
From: zonder	Respond to of 164684

I am not sure if valuation through comparison of multiples is reliable, or even possible, in sectors where the majority of companies are woefully unprofitable. Theoretically, the value of a company is best calculated by discounting its projected cash flows. However, DCF analysis is so sensitive to minute variables that it gives results in a surprisingly wide range. It is also quite difficult to put together. Personally I think analysts don't (or can't) do good DCF analyses. Re P/S (or MarketCap/Sales), by the way, the better multiple of comparing sales to price is EV/Sales, where Enterprise Value=MarketCap+NetDebt. MarketCap is more meaningfully compared to Income (P/E).