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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Stephen who wrote (35410)	11/12/2000 2:27:25 PM
From: j g cordes	Respond to of 42787

Stephen, there's no doubt companies come and go.. but there will always be "growth" stocks that defy the rules of PE ratios and fair market valuation. Its simply impossible for even the most innovative companies to continue to expand at the rates they did when they were young. Fifty million to a hundred million is a lot easier than fifty billion to a hundred billion.. there's a flattening of growth simply becaue the percentage of expandable markets decreases past a certain point. If one company were to rule the world, it could only grow at the world's max rate... of course it would have been downgraded long before then. Yes, CSCO is vulnerable to the same forces of dis-appreciation that hit LU. And we may have to run out the cycle of psychological gear shifting on how to value companies that in the end are also subject to the laws of supply, demand, customer strength and world economics. The deciding factor over the next year will in part come from Wall Street's ability to turn the markets, keep investors happy and optimistic so they continiue to place their financial trust there.