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To: Chuzzlewit who wrote (31502)	2/28/1998 11:50:00 PM
From: Jeff Mills	Read Replies (1) \| Respond to of 176387

--Off Topic-- Paul--Re:<<I will say flat out that the parameters you cited: PSR and equity are totally useless. The former because it doesn't incorporate the concepts of growth or profitability or cash flow>> I don't think PSR is totally useless. Two examples for you: 1. Quantum in the summer of 1996 sold for $6/share. Sales were $1.4 billion per Q, Q after Q. The problem was, QNTM was not making any money (kind of like right now in the disk drive business). The market valued QNTM at $960 Million at that time, yet the company was a $6 Billion corporation. PSR of 0.17. They turned the corner and the stock hit a high of $43 1/4 about 14 months later. QNTM still to this day sells $1.4 Billion worth of drives per Q, just like it was in the summer of 96. But the PSR method showed you just how cheap it was at $6. WDC somewhat fits this mold today. PSR of 0.37. 2. Best Buy--Six months ago BBY was $13. PSR was at 0.08. 8 cents in stock for every $1 in sales. Yesterday BBY closed near $60 dollars and it's chart may be just a tad better than DELLs has been. The PSR was a useful tool in that it gave investors a paramater as to just how cheap that stock was, especially when they were able to turn that corner. Everyone has their own tools/paramaters they use. Although the PSR is not the best one, it certainly is not useless. Often it can find some diamonds in the rough for you. Good Nite, JM