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Technology Stocks : America On-Line: will it survive ...?

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To: Bob Kimball who wrote (8219)2/24/1998 5:50:00 PM
From: Andrew Fenic  Read Replies (1) of 13594
 
Bob,

What exactly do you base that "wave" analysis on? Remember past performance is no indicator of future success. PE, however, is correlated very strongly to performance. Stocks trading at PE's beyond 100 with little chance of great future earnings growth invariably get hammered. Question isn't if but when. At a PE of about 500 I'd say AOL is getting really close to that when.
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