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Technology Stocks : Internet Analysis - Discussion

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To: Chuzzlewit who wrote (364)5/13/1999 12:05:00 PM
From: musea  Read Replies (1) of 419
 
Chuzzlewit,

I apologize for the link. It was the correct link, but apparently the story got updated today. The T. Rowe Price fund manager was a man named Morris who used price/sales divided by net margin projections to rate stocks. I've forgotten the fine details (you have to take it on faith that there were some of those) but somehow this was to arrive at a metric that took into account profitability. Of course, this number bears some relation to profitability going forward, but so do many other numbers. To me it looked like something you use to rationalize to yourself the high price you just paid in order to play the Greater Fool Game.

Sorry for the "shifting link." If you are a subscriber to TheStreet.com you might be able to pull the article out of their archives. I have no access to their archives.

-musea
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