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Microcap & Penny Stocks : TASA. Can someone with KNOWLEDGE help!!!!

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To: Thomas Kirwin who wrote (54)12/3/1997 7:39:00 AM
From: Ralph Bergmann  Read Replies (1) of 601
 
Tom,

If we reach 17$ and I still have my tasa shares, I will invite you for trip to Europe.

What I simply mean is that people pay high prices if they have the feeling that there are others paying higher prices for the similar product. A PE of 30 or 40 would be wonderful for tasa.
Have a look on the automobile sector. The typical PE is 8-10. Why?
Of course I know you can make calculations with interest rates, growth rates, bookvalue etc. which gives you a theoretical valuation of a stock.
But the value of share is founded by what people think it is worth.
How can msft justify an PE of over 50? or MOT of 35? People evaluate some stocks higher, some stocks lower.
I think people will evaluate the teaching sector higher in the near future (due to governmental initiatives) and as you can see ALSI is already one example.

Best regards!

Ralph
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