AXC got mentioned in this weeks Barron's. Don't
think it will do us much good though.
JMR
"As the 'Fifties wore on, investors were prepared to pay a higher price for glamour. In the bull
market that followed, such issues as Texas Instruments and Xerox sported P/E ratios of more than
50. Just as 1930s and 1940s investors had been overly pessimistic, so those of the 1950s
appeared to discount not only the future, but the hereafter as well. Does this sound familiar?
Had you purchased shares in some companies like these, you would have reason to celebrate
today. But how about others, such as Aerojet General, Itek, Ampex, Fairchild Camera and
American Photocopy, some of the forgotten glamour stocks of close to half a century ago? You
don't have to go back that far. How many of the biotech stocks of a decade ago are still attractive?
Perpetual youth isn't a gift given to mankind -- or to stocks.
The lesson: The market goes to extremes -- both on the downside and upside -- but has a nasty
habit of eventually steering itself back toward rationality. That's something that today's intrepid
Internet investors might do well to remember."
From,"Barron's Features
Going to Extremes
Both on the upside and downside, Wall Street has a flair for it
By ROBERT SOBEL" |
