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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: Bob V who wrote (1809)	1/14/2005 11:07:05 AM
From: profile_14	Respond to of 13449

Bob, you are correct in your data, but remember the HBs are countercyclical. When all is great, their ratios should be low. They are high now because they've been hyped. The ratios are not high relative to technology companies, but historically, they are trading at significant premiums to anything ever seen. They typically trade in single digit P/Es. The forecasts do not reflect any order cancellations, so the forward P/E is meaningless if there is a systemwide event or shock, such as rates rising faster than anticipated. The CEO sold $160 worth of stock just last month half way through this run. That speaks volumes to me. I covered my short this morning (via puts) and lost a little money. I would rather pay that than not be around to cover if it goes up more. I also covered my TLT short for a small gain. I will gladly discuss this further with you next week. I have left the trading mode for the weekend as I am going camping with the kids. Before I left I bought more IBM. They had a great quarter as I understand it from a friend. Everyone is upbeat. Moreover, foreign exchange rates have also moved in their favor. I was short IBM, now I am long IBM -- and so she goes. Best regards,