aol = mirabilis/icq
george,
aol is somewhat of an "info-central" .... a simple ad placed on their website, and it is broadcasted to 15,000,000 million worldwide ... does everyone on this thread know what icq/mirabilis is? if you do, then all of you will understand why aol's valuation is so high ... the measure of a stock is by its free cash flow: not earnings, not p/e, not book, but fcf. most solid companies have consistent p/e's and valuations because they are established ... for all who remember the biotech boom and bust of 1990-1993 and beyond will see the similarities of the promise of biotech and the net ... the key question is "will the product be accepted by the many?" like windows95, intel's pentium, and amgen's epo and neupo, they have wide acceptance among the industry's users and followers now .... but the vast majority of others in the same sectors have either been mediocre or have gone bankrupt ...in a sort of cryptic way, i hope i answered the question ... if you want my advice, if you don't have the stock now and you want to enter a position, trade the stock/options ... if you want to enter a long-term position, buy it at a point that if the stock drops another 20 points, you will still be holding the position ... the volatility is going to pick up a lot more than people think, and you can see it in the option premiums ... those guys in the pits want to make sure that if you want to gamble, they will make you pay for it ... |
