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Technology Stocks : USRX

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To: Pat Buglak who wrote (11727)2/14/1997 4:23:00 PM
From: Frank DiLorenzo   of 18024
 
Market Overvalued ...
With stocks like P&G, Campbells, and Colgate selling at price multiples similar to USRX, this market is clearly very overvalued. Investors are paying a premium for slow growth. This makes no sense. USRX should be at $90, not 62$. This is what scares me. USRX has the potential to reach $5 in earnings within the next 2-2.5 years and the stock is not moving up with the market. I still feel USRX will eat the competitions lunch, but I wish they would put out some positive press releases to assure investors and customers. I hope this stock makes a big move up next week. I am going to buy some puts to protect my downside.

This market can no longer be trusted. What is bothersome is topline growth on most of these big companies that have moved up is extremely average. Eventually, costs will not be cut further and this fact will be felt on the bottom-line. Also, a strong US dollar will hurt. The market may very well move up to 8000, but I wouldn't be shocked if it fell below 6000. I never thought I would see momentum investing migrate to large cap global firms.

Any thoughts?
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