America On-Line: will it survive ...? Message Board

STOCKTALK

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 Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jorge who wrote (11699)	11/2/1998 6:57:00 AM
From: LWolf	Read Replies (1) of 13594

Jorge... on high P/E One of the points that no one seems to be bringing forward is that high P/E stocks are usually because of high projected earnings growth trends. If you look at high P/E stocks you'll usually see forward growth projections above 30% for 1 year and 5 years forward. Valuation is based on what people are willing to pay for the future. They are willing to pay for forward earnings. They are willing to pay for the winners in their industries and segments. They are willing to pay for top management with vision that can profitably lead a company. The high P/E stocks are often the bellweather stocks for a industry for a reason; the market has decided they are worth it. Savvy investors sell when the forward projections on a company are no longer strong. P/E then is a reflection of what people are willing to pay. All a high P/E ratio is telling you is that a LOT of people are willing to pay a fairly high price for a consistent winner. And I agree with you Jorge, I have found that the only stocks to own or invest in are the ones you can count on. They are the blues, they are the big caps, they are the high P/E. They are the winners that make money for their investors. LW

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next