One valuable lesson I have learned over the years is that overvalued stocks can get a whole lot more overvalued before coming back to earth.... Google makes good money. But is it really worth 15 times sales and 45 times projected earnings? Amazon.com might provide a basis for comparison. At its peak, the stock was selling for 30 times sales. Today it sells for only 1.5 times sales.
Sunday, October 22, 2006
Quote of the Day
Vahan Janjigian in his blog, MoneyMasters, on Google's stock price: