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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: 16yearcycle who wrote (91596)	1/20/2000 1:05:00 PM
From: Greater Fool	Respond to of 164684

>>techs have gone to the most extreme valuations I have ever seen Agreed. I sold a week ago. I kick myself as I watch the techs continue to rise, but I just don't feel comfortable with the valuations. >>techs will do better off the bottom of the next correction Agreed also. Tech is where it's at for the next hundred years, but right now the valuations have gotten too far ahead of the opportunities.

To: 16yearcycle who wrote (91596)	1/20/2000 6:33:00 PM
From: H James Morris	Read Replies (3) \| Respond to of 164684

>Not that 1 person in 20 investing in this market has a clue how to value a business. Value a business? In which economy? The old or the new? To evaluate Amzn in the new economy you need to use PERM, or price/(earnings+R&D+marketing). Some otherwise attractive stocks look ridiculously overvalued when measured using the P/E ratio, yet appear fairly priced measured with PERM. The key is to view R&D and marketing as investments, not expenses. A second useful metric is P&F(past and future performance).It contrasts a company's ability to articulate its prospects to industry analysts. Ultimately, PERM and P&F point out what new economy economists already know. Today, it's all about building customer bases while creating technologies to serve them. Ps Do you understand what I just said?