There's a new sheriff in town.
His name is Mr. Earnings. First name Price-to. He's taking Names, and marking them down. Just pulled over MSFT, going to issue a big citation, payable Monday morning.
He says, "Mr. Softie, you and a lot of folks have been exceeding the speed limit. Look at your speedometer. It should be marked in PEG units. 1 is safe, 2 is the speed limit. We'll let you get by with using forward earnings, but don't push it, I mean only the 12-month forward kind. A lot of you have been taking out the factory equipment, and installing speedometers marked in price/sales, or momentum units. Your daddy told you that wasn't safe, and it's time you listened. Speeds have been creeping up since 1974, but it's really got out of hand since October 1998. Do it long enough, and one of these days we're going to be scraping you off the pavement, and sending you to Rehab for a few years. Me and my partners, Margin Of Safety and Reversion To The Mean, are going to be on the Street, in your face, enforcing the speed limits, from now on. How would you like it if we took away your license to print money, pay employees in options, and defer the costs? If you think you can ignore us any longer, we'll be making life difficult for you. Got it? " |
