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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (47662)	4/10/2003 9:43:40 AM
From: DanZ	Read Replies (1) \| Respond to of 53068

If the market were rational, and I believe that it is over a long period of time, albeit definitely not in the short term... If MTXX just meets their guidance, the stock would trade higher. If they beat their guidance, which I think is probable, the stock would trade that much higher. If they stumble for whatever reason, it would depend on how much and why. If YHOO just meets their estimates, the stock would trade lower. They would have to beat the estimates by a wide margin just to justify the current valuation. If they don't meet their current guidance, look out below. The question from an investment perspective (not trading perspective) is if you'd rather own a stock that has already been discovered and is overvalued or one that hasn't been discovered and is undervalued. The best I can tell, that is the only reason that YHOO trades at such astronomical multiples given its growth past and future (expected), and MTXX trades at such low multiples given its growth past and future (expected). My style is to buy the latter. Someone else might prefer the former. The latter strategy should pay off IF the companies in question come through and the market is rational in the long term.