Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Kopin Corp. (KOPN) -- Ignore unavailable to you. Want to Upgrade?

To: John Finley who wrote (911)	11/7/1999 3:31:00 PM
From: kinkblot	Read Replies (1) \| Respond to of 1820

From "One Up on Wall Street" page 259, When to Sell a Fast Grower: Unlike the cyclical where the p/e ratio gets smaller near the end, in a growth company the p/e usually gets bigger, and it may reach absurd and illogical dimensions. Remember Polaroid and Avon Products. P/e's of 50 for companies of their size? Any astute fourth-grader could have figured it was time to sell those. Was Avon going to sell a million bottles of perfume? How could it, when every other housewife in America was an Avon representative? In a portfolio that I recently sold, not a single stock had a p/e of less than 50. Compared to the typical tech investor, I probably had more of a value weighting, e.g. RSAS versus VRSN. For those who don't have an astute fourth-grader available, perhaps Lynch can be modified for the new era by multiplying all the ratios by 5 or so, and using future instead of trailing results. WT