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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Reginald Middleton who wrote (10466)6/24/1997 2:54:00 PM
From: nommedeguerre   of 24154
 
Reginald,

>Earnings are phantom figures...
What about change in net assets which may include excess revenues not
spent on the purchase of capital equipment, etc. Does that count at
all in future stock value?

>Stock prices are calculated by capitalizing expected earnings, not
>historical earnings, nor present day earnings.
Now, now, I thought "earnings" were not a valid assessment of a
company's stock value. Future earnings seem even less viable than
present and historical. With what certainty can future earnings
be "guessed" at and on what present or historical information are
they based? 1929 was a good year for "exuberance" about the future
earnings of what was then the "hot stocks" of their day. What did
they do wrong that today's investor won't?

Regards,

Norm
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