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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Billy Joe who wrote (2374)	3/4/1999 11:22:00 AM
From: Trader Dave	Read Replies (1) \| Respond to of 3818

Top line won't grow at its full apparent rate until the legacy business is completely GONE. And you have a problem with 10% sequential growth in networking? The multiple depends entirely on your time horizon, because the high growth can help you outgrow lots of short term problems. If your time frame is SEVERAL years and you believe that PMCS can execute and sustain growth ABOVE 35% for 3 ore more years, you could justify a pretty higher multiple. It's up to you, but margin buying of a high pe stock is very risky IMO. Wouldn't it be awful if you had a margin call forcing you to sell your low cost stock? Drake, you're much smarter than anyone i know if you can confidently predict the direction of interest rates and the global economy. i certainly hope PMCS won't get down to a 24 multiple again, but it remains a possibility. I am quite certain we will see strong reactions to events again this year (perhaps unwarranted and a buying opportunity) but you must be prepared for them. TD