bshoemak2 (85.94)

Am I starting to see value in tech and internet stocks?

March 28, 2008 – Comments (4) | RELATED TICKERS: MSFT , STX , ORCL

Has anyone noticed reasonable (even cheap) valuations of some technology and internet stocks?  For example, I'm seeing P/E 's for MSFT = 15, STX = 7, ORCL= 21, and QCOM=20.  Granted these are not yet cheap prices (STX is an exception), however, they don't seem unreasonable given the healthy profit margins, ROI, ROE, sales and earnings growth.  If I'm correct, how ironic.  I learned many valuable lessons from losing money invested in tech stocks when they crashed in 2000.  Using the words of the great Charlie Munger, I can recall feeling like " I would rather have midgets walk my money through the ghetto in hand baskets" than invest in another tech or dot com again.   Now it seems like the tech companies that survived the 2000 crash have kept grinding out sales and earnings growth while Mr. Market directed attention elsewhere.  I'm hoping a more savy and wise value investor can elighten me before I am burnt by techs again.    [more]