Dividends and P/E Ratios


From: "Peter Diamond" <diamond@vsi.net>
Subject: Dividends and P/E Ratios
Date: Sun, 19 Dec 1999 10:14:17 -0500

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Ira,
(I will preface this by saying, most of my individual stock investments are
tech-based.  Also, I am young and these are long-term investments.)
Personally, I do not pay much attention to dividends, P/E and other
fundamentals.
The individual stocks I buy are of companies I believe in.  Companies in
industries I understand that I think have a good long-term growth potential.
I have looked at some more "traditional" companies, and I do think you must
consider fundamentals, but there are some questions you should ask of any
company.  Are sales and profits increasing?  How does the company compare to
its peers?  You ignore these questions at your own risk.
For me, the bottom line is, will this company be worth more in the future?
The answer needs to be yes, either because the company has a solid track
record of growth, or because they are in a growing industry where the
potential for growth is high, even if the stock appears fundamentally
overpriced right now.

Peter


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