kory, gtw included interest as part of their ops eps, if i'm not mistaken. i didn't. kind of ambiguous on my part, however, no excuse for your accusation. they have a record amount of cash that produced a marginal increase in earnings of 2 cents. i'm very familiar with mftrg and i understand completely why one tries to limit inventory and increase turns. most assuredly, the purpose is not to have no growth in your core business!!! ;-) however, when companies are at extreme valuations and the core business isn't growing (my original point - not core business excluding bank receipts) then one ought to be concerned. gtw didn't make more money selling pcs - that is a fact. gtw made 2 cents more counting marginal bank receipts.
my investments aren't performing well NOW. i've since learned that LIQUIDITY and SIZE are what is valued in a mania. most of my companies are small and illiquid companies - several being biotechs which, like nearly all biotechs have gotten hammered as of late. however, each one could be a 10 bagger in five years - from the point i bought them.
notice what is valued. liquidity and size. not VALUE. it is irrational. no growth companies trading at ridiculous levels isn't rational. micron is a great example. losing cash flow at nearly a $1,000,000,000 rate trading at $7 billion. irrationality always ends nasty. it will again.
but, that's ok. this will all work itself out. maybe next week. maybe in 2 years. there are always justifications for companies being absurdly valued. that is why they get absurdly valued. |
