I do not consider valuation off-topic at all, as my writing on the subject might indicate. The valuation threads on this board in the past six months have become so pendantic as to be of no practical use to me (and I expect others). If people would like to have a discussion on valuation which is calibrated to such a fine degree I suggest they start a new board. In the whole debate I feel we have had very little practical discussion about valuation techniques and methods as it relates to the Gorilla Game.
Just one man's opinion,
Paul
And it remains a good opinion. Pedantic seems to fit like a glove. How about we throw in some bag pipe music in the background and all go back and read the past 6 months post word for word in case we 'missed' anything? (I hate bag pipe music - and barbershop quartet music.)
You know where I now stand on using technical analysis to measure price/volume action to combine with fundamentals. Many technical analysis investors don't even muddy their waters with concerns about PE, cash flow, margins, competitive advantage, etc... and do quite well based on the assumption all of that is priced into the equity.
One could bang their head on the wall on a daily basis (in a pedantic manner) over the concerns about Siebel's or another tech stock's valuation. However, those stocks, their earnings and their revenues have been in a downtrend since March of 2000 - so why bother to bang one's head against the wall as that process plays out. In that essence, it does require discussing the potential or lack of potential for what remains of competitive advantage to make a pounded down stock worthy of future gains.
The economy will recover at some point and there will be IT companies that profit from the recovery as time unfolds. Many may be from previous leaders and many others may come from yet unknown companies that will emerge as new leaders. Plenty of things to discuss in regards to Sonus, Arm Holdings, Qualcomm, Juniper, BEA Systems, Microsoft, Cisco, Nvidia, Checkpoint, Brocade, etc... as to cash flow, margins, competitive environment and right on down the line of discussion.
BB |
