Market Gems:Stocks w/Strong Earnings and High Tech. Rank Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Connor26 who wrote (92082)	4/7/2000 1:01:00 AM
From: Susan G	Read Replies (2) of 120523

"Personal Capital: The new new rules" Great article from Red Herring. Mentions quality stocks and includes BEAS as one of the few mentioned. redherring.com REALITY BITES The brutal reality of the combined 10 percent decline on Monday and Tuesday reminded us that there is a need to return to some rules -- the new new rules. Let's keep things in control this time. Let's be reasonable about this. Let's regroup and regain our sanity. Here are the new new rules: The weak are toast. Are you meek in soul, poorly capitalized, or unreasonably leveraged? Can't handle volatility? If these attributes apply to you as either an investor or a businessperson, forget about it. Get a day job. Buy treasuries. Every company is a startup. A great company is only great on the day it announces a great quarter. The day after its earnings announcement, it's a startup again. A company that has never shown a profit should never be valued over $20 billion. Avoid companies in which the executives regularly brag about their market capitalizations and implore the public to buy more of their stock. Especially if these companies are breaking some of the other rules. The $5 billion/$100 million rule: companies with less than $100 million in projected annual revenues are not allowed to have a market capitalization of more than $5 billion. This, of course, requires more analysis of the growth rates, but enforcement of this rule maintains a bare minimum sanity level for the general growth paths of technology companies. It also provides a disciplinary framework for taking profits. Real technology markets matter. Examine the company. Invest in companies that are real technology innovators with rich customers. Is the company supplying complicated, proprietary networking gear to deep-pocketed telecommunications vendors or is it experimenting with avant-garde business models for selling beauty products over the Web? If it's the latter, it's in trouble. There is opportunity in the stocks that are now operating within the rules. As we sift through the companies that we've been following in this column and apply the new new rules to them, a few names emerge.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next