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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: pater tenebrarum who wrote (16221)9/6/2000 11:47:03 AM
From: Gary M. Reed  Read Replies (1) of 436258
 
Heinz,

Agreed on the oil stocks have been going up, but I ask you this:

Let's say a chipmaker had the price of their chips going from $2 to $5 over the past year. What kind of parabolic ramp would those chipmakers' stocks do under those circumstances? The ramp oil&gas stocks have had is indeed impressive, but peanuts compared to what POS would do if their chip prices were to rise 150% in a 9 month period.

In POS's case, you'd have analysts like Dan Niles extrapolating that price rise into a 5-year annualized growth rate. In oil&gas' case, the analysts poo-poo it by saying prices are bound to come back down.
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