Greg, just because you don't understand it, that doesn't make it "babbling". If you would objectively read what I wrote, you would see that I said nothing about growth of revenues in an historical sense. I did note that the P/S ratio was so low because they have not delivered, leading investors to abandon the stock. Pardon me if that was not a strong enough acknowledgement of weak results to suit your preferences.
What I was speaking of, rather than past results, was a potential shift in perceptions of the company's competitive position and expectations of future results. I also made NO predictions about future results, but simply suggested that, should this be an indication of things to come and the company actually does start to deliver, then the upside potential is huge.
My objective was to show that shorting based solely on a one day percentage move, without considering the underlying valuation of the business relative to its industry both before and after the move, can be very dangerous. Perhaps even foolish.
BTW, in case you don't know, the price-to-sales ratio is a fairly common means of measuring the relative valuations of businesses of all types (with the obvious exception of the many Internuts which have no meaningful sales). |
