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Technology Stocks : Dell Technologies Inc.
DELL 133.35+0.1%Nov 28 9:30 AM EST
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To: calgal who wrote (149984)12/29/1999 7:44:00 PM
From: Chuzzlewit  Read Replies (2) of 176387
 
Leigh,

Here is the problem in a nutshell:

Suppose you had a million dollars floating around. Would you buy 100% of a company with current earnings of around $1,500 even if you were reasonably certain that earnings would grow at 35% p.a. for the foreseeable future? And what happens if your company's proprietary technology is superceded in five years?

I don't think anybody in his right mind would make such an investment. But because we are dealing with securities rather than a whole company some people think it is somehow different. We are seeing a logical disjunction in the equities marketplace. It is fed by momentum players who feel that they are agile enough to find a chair when the music stops. That's just another way of saying that there is a greater fool game afoot.

Behind every equity there is a company, and that's what these fools either choose to ignore, or choose to believe that they are smarter than others playing the same deluded game.

This wouldn't bother me if it were restricted to just a handful of companies. Unfortunately, the NASDAQ is loaded with these companies trading at obscene prices.

A lot of people are going to be badly burned when this bubble bursts.

TTFN,
CTC
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