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To: jjstingray who wrote (79449)8/20/2003 4:43:35 PM
From: ajtj99  Respond to of 209892
 
How can you trade tech stocks and talk about valuation? Those stock certificates are like monopoly money for the most part.

Expense options, go GAAP for earnings, get rid of goodwill, value inventory properly, write down real estate to reflect the plunge in value of commercial tech properties, and depreciate assets to current market value instead of book value. Also, adjust portfolios to reflect current market values. On top of that, fully fund pension liabilities with real money and not assumptions (not as much of an issue with tech).

Do this and you'll see why I think it's pretty much a joke to use fundamentals when valuing tech companies for the most part.

Tech companies should be valued by their charts only with very few exceptions, IMO.