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From: "J@x J@xx" <jjain@xxxxxxxxx>
To: LONG WAVES <LongWaves@xxxxxxxxxxxxxxxx>
Subject: Science of Speculation: Jazzman's Inverse Law of Gaseous Stocks!
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Pardon my memory if I am wrong on the true science, but there is such a
thing as Boyle's Law:
"At relatively low pressures, pressure of an ideal gas kept at constant
temperature varies inversely with volume of the gas."
Today Cisco hit the P/E of 100! In Jul'94 its P/E was 20 and growth rate
in revenues (volume) going forward was close to 100%. Now that the
growth rate going forward is heading towards 20% the P/E is following
something along the lines of Boyle's Law. Let me formulate its latest
variant as Jazzman's Law:
"In relatively low prudence (or high speculative) market environment,
the P/E of an ideal gaseous stock at constant tempest varies inversely
with the growth rate of dollar volume (revenue) of the company that
generated the gaseous stock."
Move over Dow'29 or Nikkei'89 there is a new kid on the block -- NDX'98.
NDX stands for NASADQ-100 and is composed of the best gaseous stocks.
Jas, the Rabbi
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