Stock Valuation

An analysis by sandford bernstein shows that on september thirtieth, you could have bought america on line and microsoft for 625 billion dollars. In this valuation vacuum, a lottery ticket mentality seems to govern the purchase decision. Red hat sells at about one thousand times its annualized revenues in the august quarter. Many of the internet and teck companies are just concepts, and their stocks have truly slipped the valuation moorings. The model for investments in the teck and dot com companies isn't the likelihood of a 20 % or 30 % annual return based on projected earnings and p to e ratios,. But a shot at a one thousand % gain based on a