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.

Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: Dennis who wrote (344)	11/3/1997 8:42:00 PM
From: Andrew H	Read Replies (1) \| Respond to of 4916

The 37 figure is for the top 10 stocks. I am just guessing at the rest, but someone must have access to Morningstar which would give us the exact figures. I have no idea if they can sustain it. But I do know that these companies seem to be growing their earnings at about 50% or so. I don't know how long they can keep that up. But if you figure a stock is at 37 x earnings and earning 1.00, then the price is 37. If the stock earns 1.50/share next year, then the PE is 24.66. You can make your own decisions based on that. Everything I see tells me this industry will be pulling in growing profits for the forseeable future, come what may, if interest rates rise or fall, if there is a recession or not, etc., whether the Asian markets rise or fall. Thus it looks to be like the best bet IF you are going to own stocks. If you want to buy bonds that is another story. Don't know the answer about your beta question. Many of these stocks have doubled over the last year, so there is certainly some volatility although it has been in one direction only. Don't know how they measure volatility and risk. My guess is that the .70 figure is one that has been calculated over a substantial period of time. Maybe someone on the thread knows.