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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?


To: M. Frank Greiffenstein who wrote (12072)3/2/1998 2:27:00 PM
From: Skeptic  Respond to of 31646
 
Sorry Doc, whatever your qualifications in neuropsychology, you are revealing your ignorance in the basics of finance.

Comparing Tava to a bank account for valuation purposes is absurd to begin with, but to contend that Tava deserves a higher P/E because it is riskier is dead wrong.

Are you familiar with the concept of earnings yield (i.e. E/P)? That's what you should be comparing to a fixed income investment and it must increase to compensate for increased risk. Higher risk -> higher E/P -> lower P/E.

I was merely stating facts. I said nothing about my personal risk tolerance. Given your totally erroneous assessment of my motives, maybe you should be brushing up on your psychology instead.