Neik,You obviously weren't around in the Dotcom days when some...

Neik,

You obviously weren't around in the Dotcom days when some of the biggest broking houses were valuing the likes of Solution 6, eBet and Hutchison highly even though they were running very lofty PE ratios. Many large broking houses in the US were also valuing stocks like Yahoo at crazy prices relative to current earnigs. These projections were based on exponential growth assumptions in many areas. To cut a long story short, what I am trying to relay is that even well established investment houses get caught up in sentiment by taking the position that the price is justified based on exponential future growth. When the market corrected during the dotcom days, every stock got hit but the BHPs and CBAs moved on higher after some time the 'overvalued' stocks like Hutchison (HTA), Melbourne IT and Solution 6 never recovered.

Its just my point of view and I could be wrong.