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Technology Stocks : Apple Inc.

AAPL 277.96

-0.3%

Dec 8 3:59 PM EST

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To: Mama Bear who wrote (28991)	10/1/2000 6:14:37 PM
From: Meathead	Read Replies (1) of 213174

Re: did you catch the trading in EMLX the other day... Good point. However, EMLX is not AAPL. Two totally different stocks. Stocks that are trading at huge multiples, >30 times sales and a PE of 150+, are discounting growth and earnings far into the future. EMLX trades thinner during regular hours than many do after hours and anything that might cast doubt on this forward looking premium can cause a catastrophic meltdown. I don't put Apple quite in this category as it was trading roughly at 2x revenue with a trailing PE of 25 before it got slammed. Not overvalued like EMLX with it's projected 30% earnings growth rate and PEG of 4. So in comparison, a small cap with nosebleed valuations has a press release stating that their CEO resigns and the co. is under investigation as it restates earnings from profit to loss and it looses 60% of it's value (temporarily) during regular hours. A well established appropriately valued company with solid earnings announces that the Quarter will come in a little less than expected and they loose 50% in afterhours. Two totally different scenarios. One says temporary weakness, the other says our whole existence past, present and future is a sham and in question. In light of the headlines EMLX experienced with that hoax, one could make the argument that regular hours saved their stock from loosing 90% of its value. Re: There were over 8 million shares of AAPL traded in about 2 hours. I don't think of 4 million shares per hour as being illiquid. I've heard this argument put forth by many on other threads. IMO, absolute numbers mean very little and we have to look at the relative nature of things. In light of the news, it was illiquid relative to the number of shares that wanted to change hands. In the first two hours of regular trading, I think somewhere in the neighborhood 70M shares traded hands which dwarfs that seemingly huge 8M in the afterhours market. MEATHEAD

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