you said:
"Problem is, once EGRP starts to join the ranks of real players like MER, MWD, or GS, it will be valued at a P/E of 15"
to which i replied, among other things:
"then how can you be bullish on SCH, with a P/E in the 50s+?"
Message 13615528
to which you reply:
"Bullish SCH because it will be valued at a high P/E for the next couple of cycles, for the simple fact that it makes money"
to which i reply:
???
do MER, MWD, GS not make money?
you didn't answer my question.
besides, the comparison with traditional companies in the same sector is the fait that awaits most internet companies.
as Intel's ex CEO said, "all companies will be internet companies, or they will not survive".
the adjusting process has already taken place in the OLB sector.
try applying a Sotheby's-type valuation to EBAY for example, or a traditional media company valuation to YAHOO, or a Sears-type valuation to AMZN, or a traditional software company valuation to Ariba, and so on.
when i say that EGRP is undervalued even by brick & mortar financial sector standards what i mean is exactly this. |
