Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (5779)	5/19/1999 10:27:00 AM
From: Greg S.	Respond to of 28311

At a PE of 400 you are earning 1/4 of 1% on your invested money. US bonds will pay you 5.75% guaranteed. So are you suggesting that every stock should have a PE of NO MORE THAN 18? That's not quite how the valuations work. Holding PE constant over the course of a year (no matter how high the constant) if the company doubles their earnings, you double your money. Of course, PE is never kept constant because the price of a stock (especially an internet stock) is affected by SO MUCH more than just earnings. :) -G

To: Stephen O who wrote (5779)	5/19/1999 11:53:00 AM
From: BGR	Read Replies (1) \| Respond to of 28311

Assumes that earnings are static as in the case of the bond, does it not? Not true for a growth company.