. The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $19.50, all of which was reinvested in the company. The firms expected ROE for the next five years is 15% per year, and during this time it is expected to continue to reinvest all of its earnings. DEQSs Price Earnings Ratio is 5 and its market capitalization rate is 26% per year.

At the beginning of Year 2, DEQSs market price is $ 150 per share.

Is this stock a better long purchase for your portfolio or a sale or a short ? AND WHY ?