Hi Billy, On Jan 3, 2013, at 1:17 PM, [email protected] wrote: > And there's the irony. Amazon's stock may be the most bubbleicious of all the > dot-coms. But the company is arguably stronger than its ever been and the > best run Internet company out there. > > That's true. Amazon always makes me nervous, as they are both competent and irrational - a very scary combination. :-/
The deeper irony is that Apple is also stronger than we've ever been, and the best run computer company, and we are trading near historically low multiples (probably lower if we include forward-looking P/E). http://ycharts.com/companies/AAPL/pe_ratio In fact, there's a case that (except for Amazon) the whole sector is underpriced relative to historic fundamentals, due to deep skepticism about technology companies. Not necessarily about technology itself. The real issue may be that there is so much technological innovation, with more industries being disrupted faster than ever, that investors are justly worried about whether they can pick the winners. -- Ernie P. -- Centroids: The Center of the Radical Centrist Community <[email protected]> Google Group: http://groups.google.com/group/RadicalCentrism Radical Centrism website and blog: http://RadicalCentrism.org
