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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (28085)	4/27/2005 12:56:09 PM
From: Sam Citron	Read Replies (1) \| Respond to of 60323

P/E ratio equals the growth rate Wait a minute, Dave. I said the derived PE depends mainly, not exclusively, on its LT growth rate. As Cary pointed out, things like interest rates are also important. [This] misses various Return on Capital and Capital Reinvestment requirements metrics of a business. Earnings and growth rate of earnings already reflect capex requirements. I recommend you read this by Michael Mauboussin. Thanks. I love Legg Mason's research. The piece you recommended helps illustrate why I like the Korean stock market so much. "Commodity valuations" (PE=10) are already priced in. What is not yet priced in are the dramatic improvements in quality and production that firms like Samsung and Hyundai have achieved in recent years. Sam