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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (175336)	1/6/2009 1:29:01 PM
From: Perspective	Read Replies (1) \| Respond to of 306849

Yeah, I had a relative telling me how she had started buying AMZN stock because Kindle is such a big hit. Shouldn't it matter that they trade for nearly 40X earnings? They've been running somewhere around $1B in free cash flow - so they're at 25X cash flow. And that's assuming all the discretionary stuff they're selling continues to be bought in the new era of thrift. How in the world can you justify that as an "investment"? It's just another Ponzi. `BC