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

To: space cadet who wrote (6093)	4/30/1999 1:48:00 PM
From: BI*RI	Read Replies (1) \| Respond to of 17183

One comment on your analysis regarding CSCO, a stock I don't own due to what I have perceived as a too high P/E. My interest in the stock, however, has lead me to find that it's P/E is so high because the reported earnings and earnings growth have been depressed due to the many acquisitions with which they have been involved. I.E. the charging of costs for acquisitions that have not necessarily been immediately accretive to earnings has affected their numbers.

To: space cadet who wrote (6093)	4/30/1999 2:49:00 PM
From: JRI	Read Replies (3) \| Respond to of 17183

Space cadet...in mid-February, you wrote (something to the effect): "Dell, Cisco, Msft..they are always worth it, because they have the earnings...", and, at that time, Cisco was trading about at the same price, and Dell was much higher.. (AT the time, you owned calls, hoping Dell was going to (at least) 50...) Given these fact, and that both Cisco and Dell are going to report better-than-expected earnings... why are you (now) singing a different tune?

To: space cadet who wrote (6093)	4/30/1999 6:57:00 PM
From: Lee Lichterman III	Respond to of 17183

Excellent post and I agree on all points. Maybe I wasn't clear enough in my original post. I did mean to say that EMC deserved a leadership (steady earnings growth, leader in the industry etc) PE bonus. Also to address an earlier post, the 30% growth number I threw out was the one that I repeatedly saw used here when those in denial were saying that the price should be higher than 116. My point was that using growth of 30% and a PE of 80+ didn't jive. To clear matters up, I never implied nor would consider shorting EMC. I for one do not short good companies, regardless of present valuation and especially those whose charts go straight up. There are too many bogus comapnies out there (like MU) that are better targets when theri prices diverge from reality. Again, nice post and good luck, Lee