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Stocks T / The Knot, Inc.


Subject:  Re: Why the ups and downs Date:  6/3/2007  2:00 PM
Author:  jmel2cruz Number:  111 of 127

Hi MAH35,

I am relatively new to investing to, but have been following the Knot for about a year. The company has been growing at a very fast rate and seems to have tapped into the wedding industrial complex. The company has a bright future. But when the stock was priced at 30, the stock had a price to earnings ratio close to 100. Basically that means the stock was very expensive, most large cap stocks trade with P/E ratios of 15 - 25. The reason it was priced so high is that investors think that this company will grow fast and for a long time.

Unfortunately for you the company's latest finantial release indicated that the growth of the company had slowed over the last quarter.