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Strategies & Market Trends : 50% Gains Investing

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To: Mackcrab who wrote (2990)2/12/1999 1:06:00 AM
From: Dale BakerRead Replies (1) of 118717
 
What do you consider a "good" price/sale ratio in the internet sector?

A general rule of thumb is to look for P/S under 10. Everything with the Internuts is exaggerated, so the traditional P/S perspective of 1/1 is now 10/1 for "good" value.

But don't be surprised if Internuts with real earnings and relatively low P/S numbers languish. PROG is a good example. Why is it under 15 when DRIV, COOL and other online retailers are 30 or 50? No good reason except who the market pays attention to.

The counter example is FHT, which I bought at 15 and just sold for 60% gain with the buyout announcement.
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