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To: cape radical who wrote (3877)12/23/1997 9:23:00 AM
From: Woody_Nickels  Respond to of 14451
 
High P/Es result from A) High prices or B) low earnings. Should earn-
ings increase the P/E will fall. If earnings are near zero the P/E
could be 10000 or more at a price of 1 or 100. I admit that companies
in large stable industries should have a P/E range of 10-20, but techs
are another dynamic (not stable) industry.



To: cape radical who wrote (3877)12/23/1997 3:38:00 PM
From: Mathon Dabasir  Read Replies (2) | Respond to of 14451
 
>>i thought the key was free cash flow when valuing equities.<<

Cash flow??? Radical one, please! It's earnings man, earnings!! Who cares how much cash is flowing if you're -losing money- flowing it?

Mathon