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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: tejek who wrote (126464)10/18/2000 6:56:30 PM
From: TimF  Read Replies (1) | Respond to of 1584072
 
I am not sure what you mean by more cared about. Usually the stocks that are losing $$$ but are the up and comers are usually the stocks that get the most attention....is that what you mean?

More attention, higher P/S ratios ect. I was trying to find one word to try to cover all of the related ideas and was only giving myself about a second to come up with it.

Imagine a company experienceing hyper growth and it has a huge P/E ratio (or a huge P/S ration with no E). Eventually
it matures and grows at a more normal rate. (nothing is going to grow at 1000% a year for ever) When the sales growth slows down the companies stock price gets hit. It was actually considered more valuable when in the past when it was earning less. The fact that the growth would not continue for ever apparently doesn't get discounted, until at some point it gets discounted far too much.

Tim