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Technology Stocks : All About Sun Microsystems

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To: cfimx who wrote (10239)6/29/1998 12:58:00 AM
From: Cengiz Erbas  Read Replies (1) of 64865
 
> Lets say they grow that at 20% rates for ten years [...]
> Let's say investors only feel msft is worth a 25 p/e then [...]
> An investor buying today at $103 would get a 10.15% cagr
> on their money, even with a p/e of 60 on the current stock.


Are you trying to prove to me that a company with a potential to grow 20% annually for the next 10 years deserves a P/E=60 today?

Or, are you trying to tell us that your investment on a company is based on your growth predictions for the year 2007, 2008 and beyond?

Based on what assumption you think that the company will deserve a P/E=25 in year 2008? What if P/E=15 by then? Are you gonna be happy with your investment even if the company meets your growth expectations year-after-year for 10 years?

Write down your assumptions, and lets see whether your investment decisions today is based on your predictions for the year 2008, or 2013 or what?

You are not discussing investment, Xiao/Twister...

You are a follower of a religion, and practising your worship here!

Cengiz.
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