Nick: KREM with a P/E over 80 is amazing...
It illustrates how out of line some valuations are. Here are comments from a recent article on the situation...
<<...The last year has been a bust for tech stocks and profits but a boon for some decidedly non-high-tech ones.
For example, $5,000 invested in doughnut-shop operator Krispy Kreme Doughnuts Inc. (NASDAQ:KREM) at their closing price of $37 a share on April 5, 2000, after their first day trading following the company's initial public offering that day, is now worth $9,932.
On the other hand, that same $5,000 invested in Oracle Corp. (NASDAQ:ORCL), the fast-growing purveyor of database software and the world's No. 2 software company at its split-adjusted closing price of $39-1/8 a year ago April 5, would now be worth $2,173 -- a loss of 57 percent.
"That is crazy -- it is absolutely insane," said Epoch Partners analyst Mark Verbeck, who covers software companies, of the chasm in performance between the two stocks. "It just goes to show you.">>
Good Luck Investing...=)
Best Regards,
Scott |
