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

To: Cary Salsberg who wrote (11553)	9/11/2003 1:30:26 PM
From: BWAC	Read Replies (1) \| Respond to of 95616

So simple arithmetic valuation has nothing to do with determining a sufficient rate of return on your capital required based on the economic risks at hand? You know as in if CSCO could for example have cashed in its $400 Billion of valuation that it could earn more in interest payments at 2% rate than it could ever hope of making in a single year of operations? Or if AMAT cashed in its $36 Billion valuation that it could earn shareholders more in risk free interest income over a 5 year cycle than it could in operating earnings? That kind of simple arithmetic?

To: Cary Salsberg who wrote (11553)	9/11/2003 2:44:14 PM
From: Pink Minion	Read Replies (2) \| Respond to of 95616

>> use historical data and simple arithmetic to obscure the fact that they have absolutely no understanding of what is happening in the economy and, specifically, the technology sector. Yea, that history does get in the way. So you're saying "it's different" this time and I'm starting to believe it just might be. The communication revolution has convinced enough "investors" that paying 10 times book and sales is a great deal. The Internet has been the ultimate hype machine for stocks. Instant information has allowed for the massive trading pumps of stocks. How many e-mails per week do people get from family members and friends about buying this and that? So valuation of stocks probably are in a different era of valuations. The only problem is that insiders have an unlimited supply of stock to sell to these New Era bulls.