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Technology Stocks : All About Sun Microsystems

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To: Dale J. who wrote (13495)1/15/1999 4:11:00 PM
From: trouthead  Read Replies (1) of 64865
 
People keep saying that earnings don't matter and that is not true, not even for the net stocks. It's the GROWTH. Why is it that people don't talk about that part of the equation. And I am not picking on you Dale, you are just the most recent person to have said that. As long as high growth is perceived a stock will trade ahead of it's earnings proportionately because investors today take a longer view of the market than previously. That is the new paradigm. It's not ignoring fundamentals, but factoring in growth. Watch what happens to any stock as soon as it's prospects for growth dry up. This is why YHOO can have the market cap equal or greater than Sears, because sears has no chance in hell of even 50% growth where as YHOO and SUNW do.

I would love to hear what others think about this. I really think it's the Growth.

jb
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