Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Gregg who wrote (9564)	2/19/1998 12:09:00 PM
From: Phuoc Le	Read Replies (2) \| Respond to of 14631

>>IFMX was at $20 before it went to $4.00. I know when it was at $20 >>it had a high P/E. Yes, look at where it went from $20 with such a high P/E. >>The P/E means nothing when your dealing with a quality company. It's >>amateur investors that get worried with high P/E's. Amateur my rear end. Idiots don't worry about P/E. And just how high is high? Quality growth companies deserve a price premium, hence a higher P/E, but when the P/E is so high that it's astronomical and will affect your return, then it's no longer a quality company. >>The real investors don't care, as long as the company is growing at >>a good rate each year. Eventually the earnings will catch up to the >>P/E. Real investors don't care huh? What am I and the millions of others that care, imaginary investors? Have you read Peter Lynch's book? He cares about P/E. Is he not real either? Growth is difficult to predict. It's all about the future and expectations and you know what the future holds? Uncertainty. Look at what you're saying: Let's buy a high P/E company now with growth POTENTIAL. Eventually earnings will catch up and lower the P/E down to a reasonable level. Then you'll end up owning a stock with a reasonable P/E. The key there is POTENTIAL. It might not ever be realized. Why not just buy a stock with a reasonable P/E in the first place with growth potential as well. Those stocks are out there you know, just look. Then when the earnings of THAT company is realized and its price increases, then the P/E will even be lower and the stock will be worth even more. I don't know where you get your info, but you have flawed logic in my opinion.