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To: Chuzzlewit who wrote (1820)	12/31/1997 1:49:00 PM
From: craig crawford	Respond to of 7342

<< and assuming that the stock is priced properly (as MPT teaches) >> That's the thing. I didn't think the stock was priced properly above 60. I think it's priced more properly around 47-48. So I'm a seller in the 60's and a buyer in the 40's. What's wrong with that?

To: Chuzzlewit who wrote (1820)	12/31/1997 3:25:00 PM
From: Pirah Naman	Read Replies (1) \| Respond to of 7342

Hey Paul: > the point I've been trying to make is that valuation models don't work very well for growth stocks No - your opinion is that they don't work very well for growth stocks. No model works for predicting price, but any and all businesses can be evaluated on the basis of future profits. That evaluation will always be fuzzy, but that is a reflection of trying to predict the future. > and its futile to try to determine whether an equity is under- or over-priced) No again, this is just opinion. One can certainly use a matrix of assumptions and determine bounds. Of course there will always be uncertainty. > assuming that the stock is priced properly (as MPT teaches) > is reasonable to assume ceterus paribus that it will appreciate at its perceived long term growth rate. This is price prediction - not valuation. But for being of the opinion that "growth companies can't be valued" you are kind of coming close to trying to value it, don't you think? BTW, no offense intended. This would be more fun over a beer. Cheers, and happy new years to all! Pirah