If a Porsche isn't a bargain today, and it's even more expensive at $300k, what does that say for your BVSN analogy? I'm glad you couldn't pass that up, but I don't see what your conclusion is
I didn't say whether a Porsche is cheap today or overpriced today or not. My point with the Porsche analogy is this. In response to "Why is this stock worth $X??" lots of folks say "It's a dominant leader in a fast growing industry". While that may be true, that comment has nothing to do with the price ($X). Just because something is good (BVSN or the Porsche) doesn't mean it is really worth a given $ amount (in BVSN's case, $70, in the Porsche's case, $350k). So....when someone says BVSN is worth $70 per share because they are a great, growing company, it is the same (in my mind) as saying the Porsche is worth $350k because it is a great car.
Whether BVSN's share price is $30, $60, $90, $120, $150, $180, it is a great and growing company, so that argument doesn't support any given price level.
Hope that makes sense.
Elroy |
