Course 403: Speculative-Growth Stocks
How Has the Stock Performed?
In this course
1 Introduction
2 Is Sales Growth Outpacing Asset Growth?
3 What's the Growth Trend?
4 Are Net Margins on the Rise?
5 Is the Business Generating Cash?
6 What Has Growth Done to the Balance Sheet?
7 How Has the Stock Performed?
8 Is it Fairly Valued?
9 Conclusion: Numbers Matter

Since it started trading in 1996, Yahoo's stock has shot into the stratosphere along with many other Internet stocks. It returned over 500% in both 1997 and 1998, and more than 200% in 1999. Such performance is certainly impressive, but will be hard to maintain. Speculative growth stocks in general, and Internet stocks in particular, are fragile. They can crumble on a whisper of bad news and rally on an encouraging rumor, so be prepared for plenty of volatility. There's not much you can do about that; to get those highs, you have to risk the lows.

Next: Is it Fairly Valued? >>


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