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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD -- Ignore unavailable to you. Want to Upgrade?


To: Bosco who wrote (2453)6/3/1998 9:26:00 PM
From: Alomex  Read Replies (1) | Respond to of 3115
 
I don't know what (if) I was thinking when I bought this stock.

It currently trades at a Price/Sales ratio of 5 and forward Price/Earnings of over 30. This stock cannot possibly justify a higher valuation (which does not mean it won't go higher, but I don't like to invest on the basis of the "greater fool" theory).

I made a profit with this one so I can't complain. My only regret is that I didn't sell a couple of weeks ago...