I don't remember the their PEs, but I recall same gloomy scenario. Research the history of GM, the evolution of TV or cell phones and you will see. I sold my AMGEN listening to such gloomy predictions. I also sold my initial purchase of AOL which I only paid about $21.00 dollars for only to buy it back at a higher price. When Etrade came out, IPO shares were offered to account users ( which I was one) but, I did not buy any because my then broker gave them only two months to go under. Did Meryll Lynch not describe the internet investing as something for idiots, and where are they today? (Internet ). Granted, the valuations on some of these companies are weird, but eventually, winners are slowly emerging. AOL, YHOO, EBAY, INKT and a few of the major players will end up being the AMGENs of this sector. Remember MSFT and DELL? Did IBM not say same about the WINDOWS OS after they turned down Bill Gates offer to sell it for under a million? The unfortunate thing is that, by the time these winners emerge, individual investors who actually grew these companies will no longer be in it. This time, I will follow both history and my mind and let the chips fall where they may.
ben |
