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Strategies & Market Trends : Bill Wexler's Profits of DOOM

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To: Hank who wrote (2948)9/23/1998 12:53:00 AM
From: hasbeen101  Read Replies (1) of 4634
 
Go through the list of stocks and look at the biggest percent gainers over the last couple of weeks. Interestingly, they always appear to be the stocks that are the most overvalued by any standard means of FA

Not so. These stocks look overvalued based on past earnings, past sales etc. Most people on SI use these valuation measures. But Finance 101 teaches that the future cashflows are all that matters. The past is totally irrelevant. Obviously some people (enough to form a market consensus) expect these companies to grow so rapidly that the future cashflows will justify the current valuations.
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