To: Tom who wrote (34472 ) 9/7/1999 8:12:00 AM From: Suzanne Newsome Read Replies (1) | Respond to
This weekend I read a highly regarded investment newsletter for which a smart person spent cash money. One article was explaining the revolutionary importance of the Internet. The author listed "35 Internet Stocks That Will Change the World." I believe the criteria for making the list was the company had to a) increase revenues by 50% and b) increase profits by 100%, both in the second quarter. A few names on the list include Aware, Broadcom, Broad Vision, Cheap Tickets, Citrix, CNET, Entrust, Go 2Net, Harmonic, HI/FN, and Infosys Technologies. Wall Street Journal and recording the prices and the PE's. The prices of these 11 stocks ranged from $21 13/16 to $124 13/16 with an average of $72. You may be thinking what I was thinking at this point: these companies must be making a pocketful of money. Of the 11 stocks, only 2 had numerical PE's (56 and 42). Two of the 11 had "dd" which means they lost money over the past year. Four stocks had "cc" which means the PE is over 100 and generally considered meaningless because the profit was very small in comparison to the stock price. Three stocks had blank PE's.
