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Gold/Mining/Energy : JDS Fitel -- Ignore unavailable to you. Want to Upgrade?

To: Gary H who wrote (797)	4/16/1999 10:06:00 AM
From: Hank Stamper	Read Replies (1) \| Respond to of 815

These share prices are, like other "internet" stocks unreasonably valued by the market at this time. This "baby" is already "fly(ing)." This company actually makes good revenue and earnings, is a leader in a non-commodity market. That augurs well for the long term future and anyone who bought shares when they were valued multiples below 30, can sleep well at night and enjoy the ride. Those who purchase at multiples of 50, 80, 170!! may need seconol. If you own the stock at a p/e's in this range, and you sleep well, you are not familiar with the radio stock, bowling stock, and electronic stock crazes (to note a few). Yes, there is a difference between those stock crazes and this. This one craze is unprecidented. It has gone well past most (not all) other crazes. It too, however, will end. Not in a whimper. The history of these crazes is that the p/e's over time, regress toward the mean. The mean historical p/e for JDS (before the recent explosion) is in the mid-20s. Even if the 'set point' for the p/e has been bumped up 10% or 20%, current valuations are IMHO unsustainable. If you say otherwise, then you are repeating what the owners of RCA said in the mid-1920s when it's multiple had gone through the roof too. Ciao, David Todtman