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There's nothing wrong with using PEG, but don't use it as the only indicator. Look at the financials of the company. Look at the market sector. Look at their growth (actual and expected). Do you agree with their business model and plan? Do you know what their business model and plan are? These are the questions the foolish investor must ask. Then buy the stock if you think its a good solid company with good solid growth potential. Buying a stock just because its at a low PEG is more like gambling. Don't just buy stocks, invest in a company.

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