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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?


To: Will Lyons who wrote (6814)8/28/1998 4:41:00 PM
From: Stitch  Respond to of 10921
 
Will,

<<Quite correct re book value, but what if the cash portion of the assets is equal to or above the stock price ? -- so lets look at price/cash ratios.>>

So you find a very low ratio. What then? Lets say I come to you and say, "I have a lot of cash but want some more to start a business which I haven't defined yet but I had some success in this other business." Want to invest?

In other words low P/Cash, P/Es, P/Bs, P/Sales are simply tools to let you select companies on which you then go do very diligent research. Right? I agree that price to book is less meaningful as technology turns increase in frequency.

Best,
Stitch