We own Edison International -- it is our largest position. It's a California utility. It could earn $2 a share next year, ... And it's probably worth between $22 and $24 (per share). They have an unregulated subsidiary, which could be worth another $2 to $4 (per share). |
We think pricing is going to be up in mid-single digits as early as June. People are not really looking at this at all. And historically, if you look at a price to sales multiple, this stock can trade as high as $40-to-$50 (per share), |
We'll start to see shifts in there, and I think high-end consumer stocks are going to see a lot fewer sales, |
When it's your time, it's your time. |
You can see many companies have collapsed that never generated cash flow. |
You have to take the actual numbers and the guidance and combine the two. I tend to think if the high p/e (price-to-earnings ratio) stocks have a weak quarter, and even if they have ok guidance, they're going to get killed. But if there are cheap tech stocks that have a weak quarter and so-so guidance, they're probably the ones to buy first. |
You're still seeing people like Compaq worried about the quarter so you're seeing more pressure on high multiple stocks. The market is still trying to find a bottom but selling on continued fears of warnings. |