SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : America On-Line: will it survive ...?

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Saul H Rosenthal who wrote (10592)7/12/1998 1:58:00 PM
From: J. P.  Read Replies (1) of 13594
 
< In the quote from Peter Lynch he repeats several times "if the earnings stayed constant" or something like that. But noone expects the earnings on AOL to stay constant. Do you??? Really?? >

I read that also, and interpreted the meaning to be that stocks
which exhibit quarter over quarter incremental increases in
revenue can be afforded higher PE's.

Of course a stock with static earnings wouldn't be a good investment
at a high PE.

Also, i think that PE is a terrible measure on which to base your
investment decisions. I think top line growth, EPS growth,
and margins are far more telling. Obviously if the company suddenly
begins to show a slowdown in earnings "The Street" will suddenly
and viciously cut its market cap.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext