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


To: Pam who wrote (48776)8/1/2010 2:35:54 PM
From: Donald Wennerstrom  Respond to of 95432
 
Pam, I know we haven't proved the general case that you put forth,

<<to test the hypothesis that "a low PEG indicates, significantly lower stock prices ahead and/or significant downward revisions to earnings estimates.">>

However, in the case of WFR, the low PEG was a good indicator of a lower stock price in the future as well as lower future earnings estimates.

I think the message has been proven that if a stock has a low PEG, at least be careful before buying. There may be a very good reason for the low PEG.

Don