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Technology Stocks : InfoSpace (INSP): Where GNET went!
INSP 98.25+3.4%3:59 PM EST

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To: Stephen O who wrote (5779)5/19/1999 10:27:00 AM
From: Greg S.   of 28311
 
At a PE of 400 you are earning 1/4 of 1% on your invested money. US bonds will pay you 5.75% guaranteed.

So are you suggesting that every stock should have a PE of NO MORE THAN 18?

That's not quite how the valuations work. Holding PE constant over the course of a year (no matter how high the constant) if the company doubles their earnings, you double your money. Of course, PE is never kept constant because the price of a stock (especially an internet stock) is affected by SO MUCH more than just earnings. :)

-G
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