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Technology Stocks : America On-Line (AOL)

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To: Steve Robinett who wrote (5414)2/22/1999 10:01:00 PM
From: Pruguy  Read Replies (1) of 41369
 
this is what I mean by price is irrelevant.....I read a ton of research, and not one argument supporting the valuations of todays high priced issues would make any sence if they were written 10 years ago....We are in a new era now....If a company in the S&P continues to grow quicker than the market as a whole, they will garner a greater and greater percentage of the index money....This will cause the weighted demand to increase and push the share price higher....This phenomenon unwinds itself when a company begins to slow its growth rate....then it becomes a smaller weighted portion of the index and future inflows are not as heavy as it becomes a lighter weighted part of the S&P
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