Greg, just occurred to me...
Perhaps there is a definite, "define-able" flattening of the valuation curve for all growth tech companies henceforth.....the new "metric" being the 200B-400B range...that's when, apparently, these companies get so large, their sales so immense...that either (1) they are begin to get eaten from below by competition (EMC? CSCO) (2) they get sued for anti-trust (MSFT, maybe in future AOL/Time Warner?) (3) the "law of larger numbers" kicks in, and makes it virtually impossible for them to maintain high-rates of sales growth (Dell) or (4) While trying to maintain the string of high-sales growth consecutive periods, the company gets sloppy, and starts adopting bad practices which ultimately leads to its demise (Dell, option plays, Cisco, vendor financing, etc)
(It would be useful, wouldn't it, to have a high-probability theory as to what the limitation of market cap are....)
Obviously still is nascient stage...any thoughts appreciated.. |
