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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (15303)	12/4/2002 1:21:00 PM
From: MulhollandDrive	Respond to of 57110

well if you look at it this way...getting back to valuations....even if a company muddles through, staves off bankruptcy, and at some point becomes cash flow positive, you still need to look analytically at the price you are paying for future earnings, if those earnings (while positive) are meager, investors will eventually see the price does not support the earnings. my bearish perspective is that earnings have to grow more than the paltry single digit gains which are mostly supported by "productivity gains" and reduction of overhead that we have seen. and i hear few co's predicting anything more than the most tepid top line growth.