|
|
Enron Mail |
"Mr. Launer's tip for investors who don't have the time to do exhaustive
research: Look for companies such as Enron and El Paso whose stocks are trading at price-earnings multiples that are lower than their long-term growth rates." The one thing that scares me about Enron is the P/E, regardless of earnings growth. Our earnings growth has been so strong it is like a treadmill that keeps getting faster and faster. At some point you fall on your ass. That being said, I have never sold a share of Enron stock or exercised an option. We always seem to find ways to reinvent ourselves and make money appear from nowhere. Investment in Enron should be treated with the same caution as investing in Cisco or any other new economy stock that challenges traditional valuation methods. Chris
|