I wholeheartedly agree, John. My earlier comments were not directed to the yet-to-be-fully discovered values in the marketplace, which IMHO, TKLC is.
We can discuss PE ratios here ad nausea, and the so-called pundits forever will. IMHO, it is but one metric to gauge how pricey a particular stock is or is not, and surely is not the only one that some more myopic individuals like to adhere to.
Right now as I write this Jonathan Cohen, ex-Merrill, not Wit Capital analyst is on CNBC. He's the guy who said AMZN was only worth somewhere in the double digits, after a guy at Pru called for a target of I believe 250 or 300. He was wrong in the short term as AMZN presently trades split-adjusted around 60-65, which I think translates to a pre-split price relative to the call of about 180-190. The bottom line who's right & who's wrong on the PE issue? IMHO, neither, it all depends upon the details and on when?
Someone who just screams PE! without looking into other metrics, getting a true handle on the company, its technology, it prospects, its markets & competitors, its management, its track record of execution, etc, etc, is just pissing in the wind as far as I am concern.
I am an admitted long term investor, and over time, through market swings, the true value of an extremely well performing company will be recognized, regardless of what some view to be an excessive PE. I think the record shows this, and shows it over time. |
