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Technology Stocks : VIAB (Viacom Class B shares) formerly CBS -- Ignore unavailable to you. Want to Upgrade?

To: Patrice Gigahurtz who wrote (2681)	10/3/1998 3:03:00 PM
From: ED_L	Read Replies (1) \| Respond to of 4613

Price to sales values of <1.0 good selection criteria for underfollowed, out-of-favor stocks. Once they become popular(HOT) such as a Microsoft then the ratio goes out the window. MSFT currently has P/S ratio of 17 and in 1992 had one of 7. On the other hand IBM from 1992 to 1994 was <1.0 and 1.02 in 1995 and is still only 1.48. To me then IBM represents better value than CBS due to P/S (but not as good as it was in 1995 when it was 1.02). I just consider Price-Sales a better indicator of value than P/E although obviously one has to consider all the fundamental data plus condition of the overall market at the time. The market is like the high tide and the low tide. It generally causes all boats in the water to rise or fall with it. Occasionally, when the sun and moon and weather or all in sync one can have killer tides where the water rises 8 - 10 feet above normal high tide. That is what one I am most fearful of a current time and why I am 80% in cash/treasuries. For example of good undervalued stock at present time look at PM (Polymedia) with P/S 1.02 whereas it had a P/S in 1992 of 5.