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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Barbara Barry who wrote (42604)	5/7/1998 6:46:00 PM
From: Tom Trader	Read Replies (2) \| Respond to of 58727

>>What is scarey is that the market tanked in Oct. due to Asia very quickly and recovered....that just made investors less impacted by "real" bad news<< Barbara, that is how tops are made. It pulls every one in because one see that each time it keeps recovering and going to new highs and then one buys with the confidence that even when it pulls back it will not last -- and then one day it really is the top. In a sense when the last bear throws in the towel--that is when the top is in place. I can't recall what the media/experts said when the market in Japan topped in 1989 -- but I would suspect that it was viewed then as just a pull-back -- the only thing is that it has lasted almost 10 years. I don't know if the Starr report will make any difference or not--in fact, I feel sure that even if we have a major pull-back in June, it is not the end of this bull; like I said before, sentiment has to change drastically for a major top to be made. The froth that we have seen in the internet sector has to become wide-spread and we need to all become believers in the market -- probably when I am 100% invested and I am pounding the tables like OJ, we'll have a top in place:)

To: Barbara Barry who wrote (42604)	5/7/1998 8:44:00 PM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 58727

To any who is interested: On about April 24th I decided to get into the internals of the MSH high-tech 35 index. I wrote down the ttm PE of each stock, using the number given by Yahoo Finance site. It was interesting. Here is what was revealed: - Of all 35 stocks in the index, the mean avg was a p/e of 102.3. - Yahoo Finance had three stocks with no ttm (trailing twelve month) earnings: BAY, NSCP, and SEG. - three stocks had minimal earnings, resulting in P/Es of the following: AOL - pe of 573 INTU - pe of 259 YHOO - pe of 1,229 - I subtracted these the three highest pe stocks then, leaving 32 high-tech companies in wide-ranging endeavors; the creme of the crop so to speak, and recalculated the pe. I included in the 32 cos. those three that had no earnings and no pe. The mean pe came out to 47.5, for what it's worth. Note: AOL has since reported the latest quarter's earnings, possibly other cos. have reported since Apr. 24th also.