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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (2212)	2/3/1998 10:34:00 PM
From: Brooks Jackson	Respond to of 18691

Bulletin! CFON sells 31 phones! biz.yahoo.com (Must be the news that caused the rally today -- up 1/16!)

To: Broken_Clock who wrote (2212)	2/3/1998 11:38:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 18691

Dave, I don't know enough about CKR to comment on it. Historically, PE's are low when earnings are high and PE's are high when earnings are low as in the midst of the depression. This is the opposite of today's thinking. By "old fashioned logic", the economy has been robust for several years now and the current earnings growth rates can not be sustained. Therefore, PE's should be on the low side. But the new logic says that the current earnings growth rates will be sustained indefinitely into the future thus justifying high PE's based on growth rates.