Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Lizzie Tudor who wrote (23697)	4/12/2005 11:33:20 PM
From: Spekulatius	Read Replies (2) \| Respond to of 24042

The stock market is so bad they have no confidence that the market will reward improving fundamentals even if they deliver on it. Lizzie, i don't see what you are seeing. In my opinion the market rewards companies with good fundamentals. The difference to the situation 5 years ago is simply that the market values tech companies simply like any other business now based on Price/Earnings, free cash flow, dividends and book values. That is just the way it should be. Yahoo for example is one company that has delivered, trades at a PE of around 50, 7x book and 45B $ market cap. It's good business and hence trades a premium valuation. If managers really believed that their company is a fundamental bargain, they would certainly by. I personally am a value investor and don't have a problem to wait until fundamentals play out and i would expect insiders to do alike. If they cannot take a longer term perspective they probably shouldn't run a business to begin with. The times that press releases were enough to double a stock are over. The name of the game is to deliver economic returns and build value for shareholders. That's what the market rewards and you are right, for tech employees, the game is much different and much tougher than it was 10 years ago.