"Only after the cult of unreasonable expectations is finally totally shattered and fear replaces greed does the stock then become a reasonable investment again."
All tech leaders are good investments over the long term...no one can predict a stock's peak or bottom...but if the company is good, you will see gains at some point regardless of where you bought at...Look at MSFT, it keeps reaching for new highs...it's the leader in the software industry, the same as AOL is the leader in the isp business...there are reasons for AOL's drop in stock price, noe of which are changes in its fundamentals...If anyting, AOL's fundamentals have only gotten stronger over the last couple of months, while the stock's price has dropped...reasons for the drop range from the impending interest rate increase, to the summer blahs the market goes through each year...but anyone selling now, who doesn't intend to buy back soon, will no doubt miss the 1999 internet e-commerce rally the market will experience...AOL is an internet stock, and as such it will see irrationally high P/E's, and will bottom out just as quickly...the key to the stock is to figure on a decent bottom, during these lackluster months, and hold strong through the holiday seasons....the rewards will be great. |
