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Technology Stocks : Apple Inc.
AAPL 278.06-0.2%Dec 11 3:59 PM EST

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To: Moominoid who wrote (9719)3/19/1998 7:15:00 AM
From: van wang  Read Replies (1) of 213176
 
David..

Sharpe's investment provides alot of details on the equity mkt...the dividend discount model is used for utilities, etc

with tech firms...we principally use earnings...because the assumption is that the company will reinvest internal funds to grow earnings and someday AAPL will issue dividends...that is everyone's assumption when they buy a share that does not pay dividend...dividend discount model is related to earnings or cashflow models (they are the same)...different measures for different firms at different stages of their existence...

I think paying attention to valuation is extremely important IMO...I recommend using PE vs growth rate (industry or company) and adjusting for risk by lowing PE or growth rate to your desire comfort...its simple and even hedge funds use this measure

CPQ did not pay dividends before but does now

good luck...and its best to be informed than to ignore IMO
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