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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Smiling Bob who wrote (175336)1/6/2009 1:29:01 PM
From: PerspectiveRead Replies (1) of 306849
 
Yeah, I had a relative telling me how she had started buying AMZN stock because Kindle is such a big hit. Shouldn't it matter that they trade for nearly 40X earnings? They've been running somewhere around $1B in free cash flow - so they're at 25X cash flow. And that's assuming all the discretionary stuff they're selling continues to be bought in the new era of thrift. How in the world can you justify that as an "investment"?

It's just another Ponzi.

`BC
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