Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: starhawke who wrote (88065)	1/7/2001 5:46:38 PM
From: mishedlo	Read Replies (2) \| Respond to of 132070

Star. Can you explain to me why a company with 15% annual growth projection should carry more than a PE of 30 tops. That is twice what I said but far far below its current PE of 75. Look at it this way. $1 invested in KO will return $1 in 75 years. Is this a rational valuation? I can do better than that by putting half under my mattress and the rest in bank. (Ok Ok with growth it is not quite that bad but 15% growth is hardly robust). However, even at a PE of 40, we would see a drop of 40% or so in KO price. Tell me why KO puts should not profit? Is more money going to flow out of the Naz into "safe" old economy stocks? I think that is what helped build the DOW into the bubble it is in lately. M