Steve:
You are wasting your breath (I guess that an oxymoron, OK you're abusing your fingers).
Jason is a trader (go back through his posts on other threads and you will see it). This is swamp things redux.
We're talking apples and oranges here. Longs are analyzing the fundamentals in a manner appropriate for the industry sector AND for a start-up company in that sector. Their bullish attitude is a consequence of that analysis. For this company, the only true risk for the longs is management execution.
Jason, as a trader, looks at those same fundamentals and sees great risk because it is likely that, by volume alone, his trades were weighted towards company's with earnings, tangible (versus intangible) assets, etc. Typical indices, when applied to a company such as WinStar, give misleading signals. One learns that through experience.
This debate about debt is ridiculous. I asked Jason to opine on an appropriate level of financial leverage for this company and got no response. (Undergraduate finance teaches the basics on choosing between debt and equity to fund a company. I haven't yet seen even that quality of response.) Therefore, he either knows the debt level is not unreasonable and is just twisting your tail or he does not know and is choosing not to display a lack of knowledge on the subject.
For my own purposes, when Jason writes about short term price movements and trading strategies to take advantage of those movements, I will consider it appropriately. Otherwise, I will grant little weight to his opinion since I have seen no evidence of financial sophistication or sector knowledge (in contrast to option trading where it appears he knows his stuff). |
