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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: WTSherman who wrote (4904)	3/16/1999 3:36:00 PM
From: SJS	Respond to of 17183

Betting on the come.....3 years out. Don't jinx it!! Besides....the MM is making a point. There are no 120 calls writers for March to annihilate!!

To: WTSherman who wrote (4904)	3/16/1999 4:39:00 PM
From: BI*RI	Read Replies (1) \| Respond to of 17183

Going forward growth rates of CSCO and DELL are no better than EMC's. Their P/Es are equal or higher. This is what the "Horsemen" are commanding these days. EMC is joining the group. I mean, we got CSCO at P/E of 125 and LU LU circa 100. That's exactly why I opted for EMC when the P/E was in the 40s and TLAB in the 30s. Both are 38% gainers so far this year while the others are stagnant. But you're right. At this point we're pushing the envelope, and I'm not adding here. Retracement and/or continued good earnings report before getting any more. But am keeping what I've got and will amuse myself with the buyers and sellers.

To: WTSherman who wrote (4904)	3/16/1999 4:48:00 PM
From: JRI	Read Replies (2) \| Respond to of 17183

You need to look at this on a relative basis......in and of itself, an 80 PE means nothing...it must be looked at in comparison to a company's growth rate....and the P/E, growth rate relationship of other investments.....actually, forward PE are a better place to start... Last I checked, the forward PE on companies in the S&P is at least 21.......earnings for companies in the S&P are expected to grow around 7%....so 21/7 or 3... In comparison, EMC FORWARD PE is probably around 55..and earnings are scheduled to grow around, what 35%...55/35...or around 1.5... So, I content that if you consider EMC overvalued, then you must admit that the rest of the market is much more overvalued...and that is a different argument than saying that EMC is the clearest sign of "irrational exuberence"....actually, there are much more, better examples out there (if you believe such a thing...) Just my 2 cents...