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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?


To: Investor2 who wrote (20213)9/9/1998 3:03:00 AM
From: IQBAL LATIF  Read Replies (3) | Respond to of 50167
 
Within S&P are stocks which have great future growth, these stocks never tade at a multiple of 20 or 25 I can say over top of my head that take out 100 of the CSCO's INTC's MSFT's TLAB's ASND's out of the S&P the earnings just go down slightly but P/E will considerably improve, we need to see the famous compunded growth the PEG, without that we cannot realistically invest in stock market on earnings and P/E, I agree with James that earnings look bad add a variable of growth in it, for example MSFT is at 100 it is one of the largest captilised company, what is the P/E although it is way out of line with S&P and it is responsible for this high S&P average but it iwthstoood the seling the best, it is growth PEG ratio (price earning growth) which is most important....