Frank, I was just about to put 'credit' into your opinion until reading your current reply.
Apparently, you have bought into AOL (long position), can you explain
why the high p/e (over 400 then) of AOL is not your concern when you
bought the AOL for long position?
Now, I see the major reason of your not-good-to-own-aol now is
the high p/e, are you holding short position now or are
intend to get in AOL in a lower price?
It is quite difficult to read someone's notes on this board without
knowing someone's intention.
I would give you tons of credits if the major reasons of
your opinion are not built on the high p/e.
If p/e is the reason of judging the nuts stocks, then
you should down play all other nuts stocks first because
AOL's p/e is best among large capital internet stocks, AMZN, YHOO, EBAY, XCIT, LCOS, EGRP, ELNK, PRGY,..., you name it, who has
a better p/e? Which one in your opinion should be
an investment vehicle if one wants to participate the internet
era?
It is my habit to pay tribute to people who claim he/she is bullish
on AOL with an angle, I also pay tribute to people's opinion if
he/she claims he/she is a bear on AOL, but I am in total doubt if
one's position is vague as yours.
Granted, all nuts stocks are in correction mode or even in
burst mode, but nuts stocks go up and down just like other
'old fashion' stocks, yes, I worry about AOL, yes, my profit on AOL
is shrinking badly, yes, I debate to get out some portion
of my position and buy back later at a lower price, yes,...
but never p/e is my reason to act or not to act because
high p/e for nuts stocks is the internet culture at least before
this industry became mature.
I buy AOL because it is the safe one among all internet stocks,
do I worry? of course, but I am not scared because
the internet industry is only at the begin, June/1999, July/1999,...
is only a tiny piece of the future. |
