the book i mentioned provides a good overview of the DCF method, but does not delve into detail nor provide a good understanding of other valuation methods. so, this is a good opportunity for me to read about the merits of other valuation techniques. although as i said -I am not an analyst- this topic does interest me. Your recommendation for book(s) are welcome.
I wrote to a friend 2 nights ago that has his MBA from Wharton. When i told him that Biotech companies discount earnings intead of cash flow, he was surprised. He also wanted to know why.
so, i will read any books you think are worthy of reading and e-mail my professor about the topic. once i have read up more on the earnings method and others, we can have an informative, exchange of info. via PM.
I have to say that people are not always as edgy as they seem. if i question a method and receive a response like- i am surprised you have not come across blah, blah, blah- it can be taken in the offensive.
So, how about SGNC. A little more volume yesterday and most of it on the buy side. I hear we will see some nice surprises soon. I figure that if SGNC carves out .5% or 0.005 of the $20-30 billion market (not including the larger market that may result from the product and others like it)- they would have revenues of $125 million. so, even at 1x sales, we have a share price of $6. a larger market, a strong suitor, etc. puts this stock way ahead of that price. what do you think?
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