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Technology Stocks : PCTH Anyone think this can take off in 1998?!! -- Ignore unavailable to you. Want to Upgrade?

To: Amigo Mike who wrote (1075)	1/22/1998 10:47:00 PM
From: Raymond Hill	Read Replies (2) \| Respond to of 1509

It seems that people were very vocal up at the top of the range and are silent at the bottom. Which makes it another conclusive indicator that we are at the bottom. When it starts getting real noisy again, I will begin to expect an interim top ahead.

To: Amigo Mike who wrote (1075)	1/23/1998 4:16:00 PM
From: kenneth sawyer	Respond to of 1509

Back in at 4 1/2......waited for a late Friday sell-off but no such luck. The spring is compressing again :o)

To: Amigo Mike who wrote (1075)	1/24/1998 4:14:00 PM
From: Raymond Hill	Read Replies (1) \| Respond to of 1509

You made a good point that the PE ratio of 15 on the current year's earnings and 11 on next year's earnings make this an outstanding buy at this price. It is definitely undervalued when compared to the high-priced growth stocks, or even to the S & P 500. Also, consider this point. Next year's earnings, beginning June 1, are estimated to rise from .30 to .40. My calculator says that this is a nice gain of 33%. Now, if you compare the projected PE ratio of 11 to the projected earnings growth rate of 33%, you come up with a PE ratio to earnings growth rate of .30. Many people like to use this ratio as a guide to finding stocks with the potential to outperform the market average. The guideline is that anything below 1.0 is favorable, which means that the earnings growth rate is exceeding the PE ratio. In our case, PCTH has an earnings growth rate that is triple the PE ratio. There are two reasons I like this: If we are in a bull market, this gives PCTH a good chance of beating the average stock. If we are in a bear market, it gives support through the combination of a lower PE ratio and a greater earnings growth rate than the average stock. I personally am concerned about the possibility of a bear market developing, and can only be in the market, if I feel that I am in a relatively safe stock that has a big potential reward to go with the risk. (Plus, I have a fondness for relatively unknown, undiscovered stocks that have a real chance to be a big winner). This is not a reccommendation to buy this stock or any other security. Buyer beware, enter at your own risk, etc.