SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Freedom Fighter who wrote (68388)9/29/1999 11:41:00 PM
From: umbro   of 132070
 
Wayne wrote: It's sort of like the Glassman model. If you lower the risk premium to almost zero, the models will tell you that stocks are worth 100 times earnings. What the models don't tell you is that long before then your business is selling at so far above its replacement cost that everybody and his mother is going to direct capital there, come public, lower the returns on capital and drive down stock prices.

And ... the risk (and the value) become a lot more apparent when the company keeps losing money and goes into receivorship. <g>
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News