RE "but right now the market is throwing the "baby out with the bath water".
SO TRUE! The strange thing is though, that there are still
plenty of stocks valued at insanely high levels.
Look at AMZN, sure it is way down, but this is a company
that has been in existence for years, never earned one
cent of profit, has negative net equity, billions in debt,
no profit margins, dwindling cash, and it sells for $30 a
share and at 5 times sales.
Or look at a CORV or a SCMR or a hundred others.
These guys have P/S ratios, that used to be considered
nose bleed territory for a P/E ratio.
STILL plenty of excess out there, but the market decides
to sell companies with rock solid balance sheets, at
one times sales with single digit P/E's that are dominant
players in their business.
Proof positive that there is absolutely no logic to be found in the herd mentality that is this market.
Hopefully, we are in the midst of a great long term buying
opportunity as we recover the "baby". |
