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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?


To: Nathan50 who wrote (3570)8/10/1998 1:47:00 AM
From: ed  Respond to of 21876
 
Hope your five year is not just like you who has no brain !!!

Well , can you explain why growth rate below PE ratio is not good ? Who set that rule ? Pls do not lose
your temper, or your 5 year will have no one to take care of. I sincerely hope you will not end up with a serious heart attack . So, just for your family's sake , pls hold your temper !!!!! <ggggggggggggggggggggggg>



To: Nathan50 who wrote (3570)8/10/1998 2:59:00 AM
From: ed  Read Replies (2) | Respond to of 21876
 
" I will buy lightly from 78 on down " What if the stock keeps going down to the drain from $78 ?

" Growth rate below PE ratio = no good " , well, let me teach you a new rule in the stock market." Growth rate below PE ratio = good ", just look at DELL, Yahoo,
AMAZ , AOL , CSCO .....etc. These stocks can break up your stupid rule " Growth rate below PE " and keep going up. Just look at DELL, CSCO , Yahoo, AOL, they continue to grow fast, and continue to show that the growth rate is below PE ratio for many years, If those stocks are just momentum play like you said, how can it last for so many years ? The reason those stocks can enjoy a high PE is because its growth, and that they are in the forefront of the new industry, and the market potential for those companies is enormous and they continue to prove it quarter after quarter.
That is why growth rate below PE ratio = good. I hope you will remember this new rule and digest , also remember that the rule is invented by me.

As to Growth rate over PE ratio , I will say it is not good. This only shows that
the products of those companies do not have much future potential, and the growth
is not fast enough, and will probably slow down in the near future. That is the reason
why those stock never appreciate fast enough to enjoy a PE ratio which will be higher than the growth rate. Just look at those stocks in the traditional industry, you will see a lot of them with a low PE and low growth rate.

So, again, use your brain !!!!!!!!!! Don't just remember those rules.



To: Nathan50 who wrote (3570)8/10/1998 6:51:00 AM
From: LWolf  Read Replies (1) | Respond to of 21876
 
Nathan50.... may I suggest that you buy LU puts for whatever timeframe you think most appropriate.

I myself have long term calls... because I believe that this company will continue to explode in the next year.... and with long term calls I don't have to worry about the girations on the market in the short term.

Buying puts or calls a little ways out may help remove the tension that's being generated on this thread; especially if you want LU long.

regards
laura