> This intrigues me - why does a stock price have to move?  A stable
> stock price with a reasonable PE ratio may be the sign of a stable
> company. Seems to me the idea of share prices having to move is a
> recipe for short-term rather than long-term financial management.  I
> thought that the tech bubble popping had dispelled some of this
> growth-over-dividend baloney.

I may be wrong here (and I'm sure I'll be corrected), but I think this 
may be a difference between the US stock/share business model 
and the Aus/NZ way of doing things.

My understanding is that the dividend doesn't exist in the US. You 
buy stock at the current price and only make a gain when you sell 
it at (hopefully) a higher price.
In the upside-down half of the planet, a portion of the annual profits 
are divided up amongst the shareholders and periodically paid as a 
dividend. So here, a stable company can have a stagnant share 
price but the shareholder gets sent money every 6 months or year. 
That would be a reasonable, long term investment. In the US, that 
would be a poor investment because your $1 share is still worth $1.

If you put those differences into the context of Venture Capital, 
Silicon Valley, dot-coms, etc. it explains a great deal.

Steve.

======================================================
Steve Baldwin                Electronic Product Design
TLA Microsystems Ltd         Microcontroller Specialists
PO Box 15-680, New Lynn      http://www.tla.co.nz
Auckland, New Zealand        ph  +64 9 820-2221
email: [EMAIL PROTECTED]      fax +64 9 820-1929
======================================================

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