reddingrunner (93.75)

May 2008

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0 Bubble? What bubble?

May 28, 2008 – Comments (2) | RELATED TICKERS: FCX , PBR , RIG

A bubble is not defined by a rapid rise in prices, a bubble is defined- or, more accurately, can be identified by- a rapid and unsustainable rise in the P/E ratio. The P/E's of tech stocks in 1999 were obviously unsustainable- even if they continued to grow fast, the prices would have to have stayed flat for a long time just to bring the P/E's back to realistic valuations. And, in fact, the prices dropped and sales continued to grow and today tech stocks are realistically valued for the most part- but if you bought in 1998 you haven't made much money in the last decade even if your company's sales have tripled- the growth was already (over-)priced into it when you bought it. [more]

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2 Profiting from my own ignorance.

May 27, 2008 – Comments (2) | RELATED TICKERS: MT , X

Demand for steel can be expected to continue to soar for the next decade or more. Just travel the world a little and you'll see why- huge construction projects everywhere you look. [more]

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0 Set your waypoint on $75

May 19, 2008 – Comments (0) | RELATED TICKERS: GRMN

In real life I bought GRMN in 11/06 at about today's price of approx $48; sold half of it last October at $110 and the rest in February at $67. It was overbought and now it's been oversold. I guess investors are spooked by the fact that it has some real competition now. [more]

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0 Long Apple: One more reason.

May 17, 2008 – Comments (1) | RELATED TICKERS: AAPL

"I really can't think of another important device or service that is as morally bankrupt, stupid, and plain worthless as Microsoft's Vista. Someone should do jail time."

-- Director Barry Levinson in his latest Esquire "Digital Man" column

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