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Technology Stocks : Internet Analysis - Discussion -- Ignore unavailable to you. Want to Upgrade?


To: Joe E. who wrote (78)2/2/1999 6:48:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 419
 
Joe, the compounding effect of high growth is certainly an important consideration. That's why I use year ahead earnings and estimated 5 year growth rates. The problem is obviously that hypergrowth is limited (by definition). Maybe if a company is lucky it gets 10 years or so like DELL. We just don't know where it will end.

That's why I started by trying to guess what AOL might look like in five years, and if it experienced five years of growth as forecast by the analysts whether it would have sufficient cash flow to support its current valuation.

TTFN,
CTC