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Re: coopaloop21 post# 28719

Monday, 08/18/2014 4:05:30 PM

Monday, August 18, 2014 4:05:30 PM

Post# of 78243
I think that would be the difference between the share price spiking up (whether for a few days, weeks, or months), and a steadily increasing share price. Once a company's growth and growth prospects can be analyzed, a proper P/E will kick in.

Young companies or companies that drastically change their business model can cause their share price to spike up. Their share price won't stay up unless they increase their revenue and profits.

I think REDG will probably see a spike up on the initial release of the GSL. Keeping the share price up (or increasing the share price) will depend on what the actual revenue and profits are.

Edit
I should have added that Disney's P/E was typically below 15 before they bought Pixar and Marvel.
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