SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Any info about Iomega (IOM)?

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RetiredNow who wrote (52999)4/19/1998 12:37:00 AM
From: Rational  Read Replies (2) of 58324
 
Mindmeld:

I have a simple question. If you believe that the WS is using this or some other valuation model (with due judgement)to determine price, the current price should be the fair price, should it not?

The current price reflects the current information about the company and cannot tell what the future information will be. The future price will be determined by the exact future information which is unknown to us now. Thus, all the future price predictions are basically a guess work. However, a growing company with innovative products will have a stochastic price process with a positive drift larger than the rate of interest; unless you believe that the company will cease to exist.

It is just some food for thought to help alleviate any dogmatic predilection for future prices.

Sankar
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext