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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Stephen who wrote (32658)10/12/2000 7:10:59 PM
From: dli  Read Replies (2) of 42787
 
Stephen,

that problem with a lot of those highflyers is that the growth rates that their multiples reflect are not sustainable. E.g there is no way that JNPR or BRCD will achieve 100% growth every year for the next ten years. And that assumes no further stock price appreciation for the next ten years. Trading in these names is driven purely by momentum and technicals and this will continue up to the point where some very large holders start to worry about greater fools running out of supply and prick the bubble.

Dave
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