What I don't understand is why everyone compares the prices of these stocks to what they were at a year or two ago, or whatever. Sure, they have gone up, but didn't they go up for a reason. Isn't that what everyone is posting about on this thread? Don't we see these nice 50% or 60% earnings increases? Look at PKD and RDC. We SHOULDN'T see these stocks go back to where they were, because they have the earnings, and will continue to have them for years to come. This doesn't mean that they ran up a little too quick, sure, but they CERTAINLY don't need to correct to only a 50% gain from where they were a couple years ago.
Look at the techs, with their explosive growth. They have no need to correct back to their old prices from years ago. This would be like Dell going back down to 40 or so because it ran up too quick. In a little over 4 years, Dell has gone from 2 to 90. There is no need for it to go down, just because it has gone up many thousands of percents in the past years. Dell won't go down either. Intel too, has gone from 10 to 75 in 5 years or so. That also has the earnings to back it up. Look at the PE ratios, they support the prices. Look at RDC again.
Also, if GLM hits 15, I will force myself to sell everything I own, and put everything into GLM. I promise.
This sell-off will end soon, if it already hasn't.
Ed |
