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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (74374)	4/6/2001 4:05:41 PM
From: Math Junkie	Read Replies (2) \| Respond to of 99985

*Re: "Regarding overvaluation, look at finance.yahoo.com and note how ALTR is still way above the NDX . This divergence shows the overvaluation."* If you look closely at that chart, you will see that ALTR is barely above ^NDX. But a better question is, how does a chart of price action show anything at all about whether a stock is overvalued? Have Altera's earnings grown faster or slower than those of ^NDX over the period of that chart? It is simply the wrong tool for judging value.