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Technology Stocks : OBJECT DESIGN Inc.: Bargain of the year!! -- Ignore unavailable to you. Want to Upgrade?

To: Orwell who wrote (2307)	9/27/1998 12:39:00 AM
From: hasbeen101	Read Replies (1) \| Respond to of 3194

I agree with all you say. But there is one other important factor: The market is valuing this stock based on an expected growth rate around 40% annually. If you do the math on some discounted cashflow valuations, the stock price becomes extremely sensitive to the assumed growth rate once the growth rate gets massively big. If the market consensus on the long-run growth rate changes even a small amount, it will have a big impact on the stock price. So I think even when the float gets bigger etc. this will still be a volatile stock. The only way to get rid of the volatility would be for the consensus growth rate to come down under 20% : Not something I would like!!