Bill...If you want low P/E stocks may I recommend some companies in the steel sector?....What does P/E have to do with an investor making money on his investment?....Not much I may say...Looking at the SI DELL thread over the last 2-3 years you will find the Bears constantly saying the P/E was "WAY OUT OF LINE"...The money you'd have made over the last few years was just as obnoxious---Buku Bucks!...
Since you like MSFT so well (and so do I) you probably subscribe to MSFT Investor...If you do look up a Chart of AOL and overlay DELL, MSFT, CSCO and any others of your choice...Click on the "Chart" button, select "Investment Growth".....Next, click on the "Period" button and compare the 5 year, the 3 year and finally the 1 year charts...On the 5 and 3 year Chart You will see DELL (long stated as too high of P/E) as a monster performer, followed by AOL, the CSCO, then MSFT....Where you will be amazed is the 1 year Chart....AOL has been performing like DELL over the last year in terms of investment value, in fact AOL has OUTPERFORMED DELL slightly...and WAY OUTPERFORMED MSFT!!!!......
AOL is beginning to look like DELL did when it entered it's Hyper-Growth phase a few years ago...Look at a 10 year chart..DELL didn't start their Hyper-Growth phase for about 4-5 years after they went IPO..Then about 4 or 5 years ago they shot up like a rocket.......AOL began their hypergrowth phase about 1 year ago, after growing sort of slowly it's first few years after it went IPO in 1992...Taking all things into consideration, including the past 1 year investment chart comparison as some proof, and all the fundamental reasons inherent in the sector (Internet) and this company in particular, I fully expect AOL to have DELL-like returns for the next 3-5 years.
As an investment forget MSFT and invest in AOL, at least for the next 3-5 years....You'll make a much more OBSCENE amount of money in AOL as you would in MSFT.
Regards, George |
