STOCKS!!

Whats makes a stock priced the way it is? (Not in a specific order)

1. The amount of Disposable Income the public has
2. The expectations of the Company
3. Amount of Assets it holds

But the main factor is the Expectations set out on the company.(LISTEN to this if YOUR AN IOMG FREAK and tHink about it)

So the only real way you can make money in the stock market is by buying stocks that will do better than expected, or shorting stocks that will do worse than expected. After understanding this, I have this question. What kind of stock do you think will do better than expected? Is it more likely to be a stock with a PE of 200 (ex. IOMGA), or IBM with the PE of 15? I'm not saying all lower PE stocks are good, but when a company is already expected to do great things, whats the chance of it doing better than expected?

yes, stocks might be at a low price/ low PE for reason BUT

It might be there for a stupid reason. Personnally I think IBM is one of those stocks. Yes they have hit losses the past few years, but you do hit losses in order to get new products out. They seem to have a solid base now. They are doing pretty good in foriegn markets and networking. And I hope to see great things from the OS2 Merlin, which supports win95 applications on it. OS2 is a better OS to run, but does not have all the applications todays users need, but the Merlin edition will change this.

Mail me your IDEAS