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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (26272)	2/28/1998 9:42:00 PM
From: GuinnessGuy	Read Replies (1) \| Respond to of 132070

Barry, You are exactly right. And that's why I brought P/S into the picture. I think that it is important to talk about both rather than just one. From my understanding of things P/S is supposed to be a good gauge(all else being equal) of buy and sell points of stocks in cyclical industries. Is the computer biz cyclical? Maybe it no longer is -- I don't know. There was a great article in Smart Money about the success of managers trading issues on a P/S basis rather than a P/E basis. Supposedly, if you are going to base a decision on one of the two then P/S's are more predictive. Of course there was another article that stressed basing buy/sell decisions on sustainable growth rates. This technique used ROE and % dividend payout on growth stocks to determine if they were under/overvalued. The latter method is applicable to growth stocks only. I don't have the URL's handy for these articles but I might be able to dig them up if you are interested. Craig