Good points, Perry, but is there the same paradigm shift at work in these markets as well? That is, cheap workstations and generic video servers that can be tied together into useful systems without having to spend hundreds of thousands or millions of dollars? Sure, having the Mercedes of NLE companies put together a turnkey newsroom system for you would be nice, but not everyone will be able to justify this with the cost of computer power/hardware coming down so rapidly. And hasn't Avid failed miserably with their first version of a newsroom system, not to mention the "cam-cutter"?
Let's see what Avid does in the coming 2 quarters, post-NAB. Do you think revenues or earnings are going to grow at a rate to justify such a high PE ratio, price-to-book, price-to-sales, and price-to-cash flow? These are all extraordinarily high, indicating overvalue to me. What else am I missing here?
As always, do your own research,
D. Kuspa |
