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Strategies & Market Trends : Tech Stock Options

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To: donald sew who wrote (53789)9/25/1998 12:15:00 AM
From: Stephen  Read Replies (1) of 58727
 
Don, one proviso to the P/E ratio equation are stocks that have assured earnings and regular news. There are many examples ... LU, PFE, AMZN, AOL etc ..... These stocks draw shorts in and then release news which causes covering. It becomes a cycle that feeds itself. This is one of the reason for the current mess - people are trading, not investing ... and high profile stocks get crazy PE's. Obviously this does NOT include the Gillettes, Cokes and Disneys of the world .... the last of which, if I remember, was the number 1 short for August !. Guess the writing was on the wall !!.

Good luck all

Stephen
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