Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (9836)	5/30/1998 12:09:00 PM
From: Thomas Sterner	Respond to of 120523

Watch List 6/1 Add: ISLI 14 3/8 RATL 15 1/4 Still bullish: ANET 12 3/8 CACOA 15 1/8 DSPT 8 5/8 EFTC 14 3/4 LGWX 15 PMTS 19 1/2 SFLX 8 7/8 RAYS 12 3/16 TESI 7 TMBS 19 3/4 Tom

To: Wallace Rivers who wrote (9836)	5/30/1998 12:15:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

PEG ratios and Earnings Plays...PEG Ratio, along with Quick Ratio and Current Ratio are tools I've gotten from The Motley Fool Investment Guide. Motley Fools was the very first investment book/site on AOL I've used. I've since left most of their ideas since I've become a daytrader/swing trader rather than investor, but these three ratios have stuck with me throughout the last 2 years. It seems that of late they are being 're-discovered' by traders and individual investors. In Monday's Investor's Business Daily there is a very helpful feature titled "Know The Limits Of Popular PEG Ratios'. Although the article delineates the limitations of the PEG, the beginning of the article explains the value of the PEG, especially in markets such as those we are experiencing of late. excerpts: ....Louis Navellier,...says now is a great time for growth investors to add a PEG screen to their sorting criteria...The reason: The market is finally punishing poor earnings growth in large-cap stocks. He believes mid-cap stocks with strong growth at reasonable prices now stand to reap the benefits of a brewing shift in cash flows. Finally in April Yahoo launched a PEG ratio to their web site's chart and quote features. I've been using PEG ratios for the last year and a half for the 'earnings plays' and my underlying rationale is the same as these value investor's.. If the company is trading at a discount to it's growth rate, AND you find this company right BEFORE it reports earnings and you add to it other fundamental criteria such as Return on Equity, Price/Cash Flow, Price/Sales etc... you have an even more provacative potential for a blowout price move.. Take your 'brew' and then add to it various technical criteria and there you have an 'earnings play'... I've been doing this for the last 18 months, its nice to see that especially now in this choppy market these criteria are coming to the forefront and being 'espoused' by famous fund managers such as Navellier and written about in Investor's Business Daily. Of course they are intended for investors but I think a well-equipped daytrader/short term trader can make great use of this and adopt it to their own trading strategies.