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Technology Stocks : ZOOM : is the Best / Most Underpriced Stock on Nasdaq

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To: David Lawrence who wrote (2257)9/27/1998 2:30:00 PM
From: shane forbes  Read Replies (1) of 2493
 
David: "so to speak" is the right qualifier.

For instance COMS in the past fiscal year had trailing
earnings of (0.43), 0.04, 0.02 and 0.17 ["real" earnings
including one time charges]. Thus -ve earnings and 3 months ago they
had a huge premium built in - so to speak! <ggg>

By seriously folks, in case anyone misunderstood, by "large cap premiums" in the last post, I meant the "liquidity premium". These last few years the liquidity, (foreign money + US strong economy & demographics) in terms of cash rushing in to buy index funds and large caps, (+ the only correct justification that I see - the idea that the large caps have a huge market to expand into when the Global Markets are opened up) has meant the large caps have a better "floor" valuation than the small caps.

(Plus large caps who are reasonably healthy and who have thereby been around for some time generally (broad generalization but good enough - at one point Unisys for instance sold at around $6) sell at higher prices and don't have to deal with the under $5 stuff or the ~$4 1/8 margin call maintenance stuff.)

Shane.
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