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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Moominoid who wrote (11312)11/25/2001 12:10:30 AM
From: LLCF  Read Replies (1) of 74559
 
<For example, accounting tells us that the net worth of the company is the sum of the equity capital raised and the retained (comprehensive) profits. Not even adjusted for inflation... very backward looking. Not necessarily much of an indication of what a company is really worth. But many are still concerned about price to book ratios etc. >

To be fair there isn't an securities analyst on the planet that looks at that stuff without tons of adjustments if at all. The earnings power of the company is used to value the entity.

I stopped reading the Kurzweil for the time being because I threw up on the page with the parabolic graph of humans genes mapped. I'll pick it up again later... I figure it's about as relevant to the current bust as the second law of thermodynamics so I better read it... although one must be aware that history is full of examples of 'new paradigms' being spewed at market tops. This one and "DOW 36K" are good ones for the history books.

DAK
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