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


To: tiquer who wrote (3612)8/12/1998 11:47:00 PM
From: ed  Respond to of 21876
 
Mr. Robins,

Thank you for your post . Your comments " Idiot's like ed..." only showed your true
color, and a very poor representative of Silicon Investor , just like what you said in your own post .
Hope you will get smarter , not like ed, who is an Idiot , in your words.

B. Regards



To: tiquer who wrote (3612)8/13/1998 12:54:00 AM
From: ed  Read Replies (2) | Respond to of 21876
 
I have tried to ask Mr. Nathan the following questions in my previous posts, but
never got answered but fierce personal attacks. Hope anyone smart on this thread can answer the following questions :

1) Why Mr. Nathan claimed LU will drop to $50 ( 50%) , not $40 or $30 ?

2) Why Growth rate smaller than PE ratio = no good ?
and who set this rule ?

In my opinion ( reverse thinking), Growth rate smaller than PE = Good.
Why ? Because High PE and high growth rate means products of the company
have high potential, and company has strong R&D teams which can develop
products fast and push the products into market for profit.Which also means
company has strong managing teams with vision, and high productivity. All the above factors, large market , strong R&D and managing teams, high productivity
make a company of high growth. As a result, the stock price appreciate, and higher
PE. Companies like MSFT, CSCO, LU, DELL, Yahoo(future potential), AOL, ..etc
all belong to this group. Well, for lower PE, this only means that the future growth
of company is limited, and the stock did not appreciate as fast as those whose
potential of future are much higher. Look at the Auto industries, OIL and GAS ,
Utility ....etc, You can easily find many stocks with low PE , whose future growth
is limited to the natural growth of population, and competition is fierce. So, I
will count those stock which can break the barrier of " PE is higher than growth
rate " as an indicator of good, and growing stocks. While those which can not break this barrier as a stock of limited future growth.

Finally, let me ask members of this thread the following question:

Why do you jump into the LU boat ? Did you buy LU because of its future
potential of growth, its strong managing teams , and R&D capability (Bell Lab),...
etc ? Do you think the high PE of LU , but back up with quarters after quarters of high growth , is a problem ? If you think High PE of LU is a problem, then why don't you buy those stocks of low PE but with very limited of future growth ?

I hope we can start a constructive discussion over here on this thread, and no more
personal attacks , please. Of course , when you answer questions, or place a statement, please give your reasons to back it up, instead of saying " LU will drop to $50 in the next 5 month ", or " Growth rate lower than PE = No Good" without any
reasons or discussions to back up your statements. I call these simple statements without reasons to back them up "NONSENSE " !!!!!!!!!