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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 159.33-1.8%Nov 7 3:59 PM EST

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To: Pink Minion who wrote (10613)8/15/2002 2:13:44 PM
From: Robert Douglas  Read Replies (1) of 10921
 
Couldn't agree more and is the ONLY reason to pay more than book value for anything, especially if you don't get paid any dividends. At 8.6 times book you have to wait a long time just to get even.


It depends on the return you are getting. Obviously, a 100% return gets you there in a hurry.

Book value has its uses, but is one of the poorest measures used in determining value. People use it as a rough guess at "replacement value." They also misuse it and compare very different companies in very different industries. Finding value is never that easy.
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