Go to Jeff Salisbury LWGate Home Page.From: "Fred Richards" <adrich@gte.net>
Subject: RE: [CANSLIM] Cheap?
Date: Tue, 16 Jul 2002 12:17:48 -0500
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Zillagirl:
If it only gets back to the median, we will be very lucky. Almost all
markets are subject to the pendulum effect. At this point we are coming
back down from an extreme high on the P/E ratio. What force do you think
will stop it from overreacting the other way?
Or are you not aware of physics and the laws of motion? My mentors drummed
that lesson into me the hard way. It cost me a lot of money to discover
that the trend is one's friend.
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of zillagirl
Sent: Tuesday, July 16, 2002 12:14 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Cheap?
Thank you Charley , I see your point,but in your opinion is it realistic
to think we have to do a retracement to an S&P 500 P/E ratio of 14-or 15% to
feel safe that the market is where it is meant to be? Or could we assume if
supply and demand does have an effect on the "P", maybe we need to get back
to a P/E of say 24%(pulled out of a hat for example purposes.)
----- Original Message -----
From: Chazmoore@aol.com
To: canslim@lists.xmission.com
Sent: Tuesday, July 16, 2002 9:43 AM
Subject: Re: [CANSLIM] Cheap?
Zillagirl: You may have a point, but I suspect the high S&P 500 P/E is
more a function of large techs that are still overpriced. When you look a
many of the industry groups within the 500, the P/E's are low.
Take a look a the large insurance groups with P/E's in the 20 range, or
GE at 19, versus EBAY at 109 and INTC at 37.
Charley
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<DIV><SPAN class=3D990151517-16072002><FONT face=3DArial color=3D#0000ff =
size=3D2>Zillagirl:</FONT></SPAN></DIV>
<DIV><SPAN class=3D990151517-16072002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D990151517-16072002><FONT face=3DArial color=3D#0000ff =
size=3D2>If it=20
only gets back to the median, we will be very lucky. Almost all =
markets=20
are subject to the pendulum effect. At this point we are coming =
back down=20
from an extreme high on the P/E ratio. What force do you think =
will stop=20
it from overreacting the other way?</FONT></SPAN></DIV>
<DIV><SPAN class=3D990151517-16072002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D990151517-16072002><FONT face=3DArial color=3D#0000ff =
size=3D2>Or are=20
you not aware of physics and the laws of motion? My mentors =
drummed that=20
lesson into me the hard way. It cost me a lot of money to discover =
that=20
the trend is one's friend.</FONT></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of=20
</B>zillagirl<BR><B>Sent:</B> Tuesday, July 16, 2002 12:14 =
PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM]=20
Cheap?<BR><BR></FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Thank you Charley , I see your =
point,but in=20
your opinion is it realistic to think we have to do a retracement =
to an=20
S&P 500 P/E ratio of 14-or 15% to feel safe that the market is =
where it is=20
meant to be? Or could we assume if supply and demand does have =
an effect=20
on the "P", maybe we need to get back to a P/E of say 24%(pulled out =
of a hat=20
for example purposes.)</FONT></DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3DChazmoore@aol.com=20
href=3D"mailto:Chazmoore@aol.com">Chazmoore@aol.com</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, July 16, 2002 =
9:43=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Cheap?</DIV>
<DIV><BR></DIV><FONT face=3Darial,helvetica><FONT =
size=3D2>Zillagirl: You may=20
have a point, but I suspect the high S&P 500 P/E is more a =
function of=20
large techs that are still overpriced. When you look a many of the =
industry=20
groups within the 500, the P/E's are low. <BR>Take a look a the =
large=20
insurance groups with P/E's in the 20 range, or GE at 19, versus =
EBAY at 109=20
and INTC at 37. <BR><BR>Charley</FONT>=20
</FONT></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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