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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: fedhead who wrote (37517)	6/2/2000 4:20:00 PM
From: pater tenebrarum	Respond to of 42523

Anindo, however, prices for all types of cable are plunging, due to capacity expansion having reached a fever pitch. it's all done on credit to boot, and relies on not exactly cautious forecasts. so there is plenty of scope for doubt. and the most important question you have to ask yourself is, how much of the growth has already been discounted in these stocks? look at RCA in 1929...would you have doubted then for even a moment that the growth prospects for radio were incredibly fabulous? they indeed were...and decades of growth were reflected in RCA's stock price in September 1929. it was all priced in, in one euphoric moment. needless to say, in spite of the radio buildout continuing at a fast and furious pace, it was not a good idea to buy RCA at that time. i'm just bringing it up as an example as to why excellent growth prospects do not always justify purchase of a stock...namely once these prospects are fully priced in. that said, i have no doubt that JDSU is an excellent co. deserving of a premium. but in a bear market nobody cares about that...