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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: bob zagorin who wrote (26585)	12/12/2005 8:28:43 PM
From: Lizzie Tudor	Read Replies (3) \| Respond to of 57684

sure top line growth is important, I agree. And cash flow is also important. But the most important thing is earnings. If a company like GOOG has revenue that is doubling, and cash flow that is doubling, and earnings going up 70% where they expense stock options, whats not to like? Why penalize this kind of growth with PS ratios. Its just that some people want to find something wrong in any tech company that is highly valued. Its just the times. I constantly hear this "market cap" complaining from those with a bearish perspective these days. But when you think about it, houses in CA can go for 1 million very easily now. 100,000 CA houses equals the entire market cap of Cisco. There are 6 million people in the bay area alone, and Cisco is one of the most highly valued tech companies in the world. Tech stocks are not expensive. The bear market is over and PS is irrelevant, why can't people just accept that? I don't know really.