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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: chirodoc who wrote (1764)	3/14/1999 11:11:00 AM
From: EPS	Read Replies (2) \| Respond to of 3902

FWIW I like SNE, but talking about bubbles SNE ADR's trade at PE 100 or so. Don't know too many companies in Sony's business that can manage that kind of multiples...What is the market expecting about SNEs business model? How much growth are we talking about?? Certainly SNE stock price has not been hurt too much by Japan's economic situation. While export driven SNE was a good secure play when the internal economy was in shambles, a recovery of the economy should bring them a little more down to earth?? There are certainly lots of good opportunities in Japan, but it is hard for me to find value in SNE...and so here we have bubble concerned analyst suggesting investing in SNE? Love it. Victor

To: chirodoc who wrote (1764)	3/15/1999 2:13:00 PM
From: Professor Dotcomm	Read Replies (1) \| Respond to of 3902

Perhaps also a ratio to watch is the Japanese savings rate. Incidentally, when I hear doomsayers stating that Americans are 'spending more than they save' what are the basic statistics behind this? I suspect that what it is saying is that Americans prefer to own at the moment rather than to lend. What is better: owning your house free and clear or servicing a mortgage on it? Or investing in stocks on a cash basis rather than on margin? Statistics can be misleading. In Japan's case, growing optimism should be reflected in lower savings rates. Shouldn't they? Dotcomm