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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: redwood who wrote (12041)	6/24/1998 7:55:00 AM
From: Nanda	Read Replies (1) \| Respond to of 13949

P.E's are irrelevant with these stocks!! (LOL)

To: redwood who wrote (12041)	6/24/1998 12:36:00 PM
From: P. Ramamoorthy	Respond to of 13949

Re.: cbsl sticks out to me because of its high p.e.[98... So are Yahoo, and other internet stocks, some of them have no earnings. Current price reflects future earnings potential. Some said SYNT was overpriced relative to peers. Market does not seem to care. Talking about the market. Yesterday's DOW gain of 117 points and the recovery of the tech sector were considered a great relief. (MSFT victory also helped the tech sector?) Although the Asian financial problem was blamed for everything including the DOW drops last Fall, it may be a "good thing" to US stock market. Why? The Asian mess prevents the US economy from overheating (Byron Wien) and cause rise in interest rate and inflation. Greenspan wouldn't increase the rate. US companies earnings are not going gangbusters but growing steadily. No reason to fear inflation or unit labor cost increase. A flurry of warnings on earnings disappointment came in last quarter. What happened? Instead of earnings being flat, it was up 3.8%. Now another flurry of warnings is coming in this quarter. The street expects 4.8% average or so. But Byron predicts an average of 7%. That means, the actual earnings are going to be better than expected. This story will continue get better as long as Japan is working to resolve the crisis. When Japan starts tackling the problem loans and help with the Asian mess (2-3 year time frame), the street lets a sigh of relief. So, DOW is heading higher. Tech sector moves up. y2k sector moves up. What happens to bears that are sitting on cash? Nothing! Happy hibernation! Ram