Sarmad,,,
Ok...With all due respect,,,
it has a PE of 4,,,,Because it deserves a PE of 4?
How do you value a Company,,,(dotCom)
Growing Revenues at 50 Percent a Quarter?
Growing Traffic at 20 Percent a Month?
Growing Visitors at 1.1 Million a Month?
A company,,,that could be profitable,,,At any time....
How do you value companies like that....a company,,,That looks like a Mirror image of Yahoo in 3rd quarter 97....
Ever risked your life savings,,,On a Growing Company like that?
I look at companies like Valley Media...with 1300 employees...and 943 Million in sales...with a market cap of 34 million...and a price to sales of .04
And then i think about all of the employee benefits,,,and all of the cost structure,,,and the warehouse structure...and all of the overhead involved with that....and think.....why in the world do i want to buy that....Sure it's growing revenue by nearly a hundred million a year...but why do i want to buy something like that...with that kind of cost structure,,,and risk structure...The risk is all relative...I guess. :0) |
