To: Night Writer who wrote (32061 ) 9/1/1998 12:21:00 AM From: CGarcia Read Replies (1) | Respond to
Can someone explain to me why people would continue to buy stocks in a company whose stock price is 60 times it's earnings? Or for that matter 3 times earnings? Let's take Dell...when it's stock was worth $120, it was valued at about 60 times the company's earnings...Now we get a bear market and everyone says the market was overpriced...Ok, what's this mean? Now investors want the stock to sell for what the company's currently worth? Great...I guess this means investors want the price of the stock to drop to $2 a share then...Talk about a bear market! what should Compaq be selling for, 25 cents a share? Come on...The stock market has never been a means by which to decide how much a company is worth... The stock market is nothing more than an organized crap shoot...Why else would a company like Amazon post losses and the stock kept soaring up? Experts can rant and rave all they want, but the bottom line is, the MEDIA is what moves a stock up or down...If Mr. Alcampora woulda come out saying this is a bull market for the next 10 yrs....we'd have a bull market for the next 10 yrs...Most investors haven't a clue as to when to buy sell or hold, so they glue their eyes to CNBC, and as soon as the word "bear" is heard, off to their brokers they go...Look how easy investors panicked this time, even as experts claimed Russia meant nothing in the longrun, and our economy remained healthy. Imagine if the feds HAD raised interest rates a few months ago? Where would the Dow be now be, 3,500? Let's hope in the future we get a whole new breed of investors...A few with brains would be advisable...Let's not all panic at the drop of a hat, and let's at least wait til the numbers come in before the selling starts!
