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To: SteveG who wrote (2475)4/7/1999 10:14:00 PM
From: Thomas M.  Read Replies (1) | Respond to of 17683
 
Comparing the earnings yield to that of available risk-free interest rates is something I don't think will ever disappear. If one could buy a private enterprise that has a fairly stable earnings yield of 20%, a reasonable person would be compelled to do that and pocket the earnings. This is the floor under low-PE stocks, and doesn't require the GFT.

Tom

P.S. I haven't bought any puts . . . yet. <g>