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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Kanetsu who wrote (44849)	1/7/2001 3:05:23 PM
From: Rande Is	Read Replies (1) \| Respond to of 57584

Kanetsu, I believe Spirit is simply referring to 200% up from where they currently are. . . .in other words "more upside potential than downside risk". . . many would have to go up 1000+% to return to where they were. . . which is of course unlikely. . . though we have already seen doubles and more off bottoms in recent months. . . CSCO at 90 times earnings is sure more attractive than it was at 400 times earnings, no? Of course what makes high growth stocks attractive even with high multiples is that when they report blow out earnings, it can take down the PE dramatically. . . Theoretically, if such a high growth stock's price remained the same, the PE ratio would continue to drop each time they report earnings. . . so they grow into their valuation. The time it takes for them to grow into their current valuation, based on their current price is perhaps the main factor to consider when shopping for a growth stock. Of course Spirit has a passion for value stocks, which is a whole other subject. And of course Buffet has much wisdom on long-term buy & hold strategy. But we are mostly here to discuss various strategies, mostly regarding tech stocks and other riskier types of short-term plays. One thing every investor could use is a good dose of OPEN MIND. . . . Make up our minds and take a stand in the wrong direction or at the wrong time and we could live to eat our words. As a bull, I must constantly look at the opposing view, like it or not. . . . and evaluate. . .re-evaluate and RE-RE-EVALUATE. . . all the while trying to keep an open mind. . .so that I don't hold long or short beyond where the markets have turned. Back to watching Titans. . .>g< Rande Is