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Technology Stocks : Creative Computers(MALL)

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To: Tom Hua who wrote (495)11/23/1998 8:35:00 PM
From: Clarksterh  Read Replies (1) of 1634
 
Tom - when a company grows from ground zero, the percentage is always high. But it will level off. ONSL did the same thing.

I agree of course, and I expect the growth rate to asymptote - but regardless currently it is still growing very rapidly compared to ONSL et al and thus, as valued by a P/S measure, it is entitled to a premium over ONSL unless you think that next quarter it is immediately going to fall to the growth rate of ONSL.

Clark

PS Of course the big question is indeed 'what is the long term growth rate?'. Everything hinges on that. I myself am surprised at the legs on, for instance, Amazon. It's growth is slowing, but it is still very very fast for its size.
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