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Strategies & Market Trends : CANSLIM - COAST TO COAST -- Ignore unavailable to you. Want to Upgrade?

To: ftth who wrote (3184)	3/23/1998 11:09:00 AM
From: Bruce A. Brotnov	Read Replies (1) \| Respond to of 6445

Dave, I was using the PE of a stock compared to its sector until we got so high that some of the sectors were in the 40s. Now I am using the S&P PE (around 28) for near term and 25 against next FY estimates for longer term holding. I currently carry target prices for the stocks I follow in Poormans senior listing (60+)for near term (based on S&P PE, industrial sector and long term. For example: ATLPA was at 15.75 on Friday close and I show it at NT price of 16.24, sector strength 17.51 and LT 22. I see a number of stocks trading against long term projections such as PSQL which currently supports 19 long term with PE of 25. It will probably get upgraded but PSQL, like PSFT has a pretty high sector PE. RADAF has NT est of 50, sector support 58 and no long term est. Before we got so high in the market I would use RADAF PE 11 against a PE of 25 (assumed number) and I would simply ratio it against the current price of 18.5 or target (6 mo or less near term) $42. Hope this helps more than it confuses. Bruce