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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?


To: Lazlo Pierce who wrote (14753)3/24/1998 5:25:00 PM
From: Frank DiLorenzo  Read Replies (1) | Respond to of 45548
 
David,

I agree that Coke isn't cheap. However, if my holding period was ten years or longer, which I consider to be the minimum time frame for equity investments, I would choose Coke over coms. Also, I use a break-even earnings yield analysis to price the S&P relative to the T-Bill and forward rates on the T-Bill. Two weeks ago this model approximated the market to be overvalued by about 10%. This figure must be higher now.