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Strategies & Market Trends : Classic TA Workplace

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To: bcrafty who wrote (95361)4/28/2004 11:40:30 AM
From: Perspective  Read Replies (1) of 209892
 
Sorry - some on the list would qualify more as "Beanie Babies". People aren't owning them because they expect the company to deliver an income stream in future years that provides a reasonable risk-adjusted return on your investment - they own them because the stock is going up - nothing else. Momentum. That's not an investment, that's a gamble, classic chain-letter or Ponzi.

The company trades for $2B, when they generated revenue - *revenue* mind you - of only $120M in the past four quarters. And I think everyone understands how critically dependent upon the present bubble much of that revenue is.

Most of the others I would call "trash" - overly expensive, over-hyped chain letters without much in the way of real profit-bearing companies behind them.

I would never call Intel trash because it is a real company employing thousands of people worldwide, earning real money.

BC
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