John, Andre, and all:
"They're chasing a piece of paper that is perceived as somehow increasing in value. TOTAL disconnection between the paper and the intrinsic merit/worth the underlying company can support. In fact, if you asked most shareholders what they know about any one company they're chasing....you'll find a staggering lack of knowledge. Mania...pure and simple..."
First off I guess it would be appropriate to congratulate these such people for their great gains, their great foresight, their great understanding of the mania, and secondly we should all make a toast to their incredible luck. Chasing this multitude of Multi BILLION dollar startup companies with almost zero sales amounts to little more than gambling. But if it works for them, fine. Congratulations. I always suggest that these investors look very closely at the total value of some well known mutlinational companies that would kill to have market valuations like Hype.com, companies with real, hard, physical, tangible assets like cash, land, natural resources, worldwide infrastructures, etc.
Unfortunately, I agree that most have no idea the full value of the price they are paying. Or that they even care. Longterm this cannot continue. Which is where my concern and my passing interest lies. What happens when then excesses come crashing down? Will it drag TKLC down too? I suspect yes.
I have a whole list of stocks which are being ignored. TKLC is at the top. Look at First Union bank at $35, with a 5.4% Dividend and 10 PE? Tax Loss selling has had a devastating affect on DPH and SOI I suspect. Both are below $14 1/2 with 10 Pe's. I think this is turning into a rant.........
So in summation: Why in the heck would anyone risk their chances to the extreme with Hype.com, when they could make a fantastic relatively risk balanced return from the likes of TKLC or FTU or (enter your favorite undervalued ignored company). |
