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Pastimes : James Cramer Skeptic Thread -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (342)	6/25/1998 11:19:00 AM
From: Tae Spam Kim	Respond to of 1254

Larry, I agree with you somewhat. There is definitely a paradigm shift going on with: 1. more momentum players 2. advent of online trading 3. huge 401k and mutual fund inflows (baby-boomers) But even with Amazon.com (AMZN), Yahoo (YHOO), and AOL - these are all solid companies that have enormous potential into the future. With the internet market size (e-commerce) estimated at dizzying heights in a couple years, it's difficult to value future earnings. And since there aren't many successful brand names out there, these quality internet companies get bid up. But EVENTUALLY, may take a few years - in the long term the rule is the price of a stock correlates with earnings growth. Things may seem crazy in the short term, but I don't think this rule is obselete yet in any way. -Tae Kim oursquare.com P.S. But the great thing about this era is that if a new company has a technology to transform the industry, the company with no earnings can be a multi-billion company in no time. Check out @Home (ATHM) - with cable internet access technology, shooting up with AT&T buyout of TCI (TCI owns a controlling interest in @home) and Rambus (RMBS) with its memory technology (up 50% in the past 2 days as Dell and Compaq announced they will use Direct Rambus next year).