So Abbey says they are 7-10% undervalued. To her I submit these, with the question, "What should the market cap of a company be that has NEVER shown a profit?".
As always, I am not saying these companies are not worth what they are
priced at. I am (instead)asking the question "What should they be priced at?".
What should the market value of a company at? Does P/E have a valid place in the investment world going forward. Will the world never again place any value on any commodity?
I would fall closer in line with Jim Rogers(though I do not agree with him on everything) We as a society are bringing no new mines or wells on line, we are rather closing down mines and wells.
No one is gathering any reward from these ventures,bringing any new capacity to bear, or reaping any profit from any IPO action.it the commodity fields.
While in contrast, any new internet play on the block may garner
a market cap greater than all the Wheat fields of Kansas. Will the internet grow food or bring it to market?
To that end, I offer these for us all to ponder:
AMERICA ONLINE (NYSE:AOL) 96 1/4, P/E =328.13, Mkt Cap=20.809B
AMAZON COM (Nasdaq:AMZN) 105 57/64, Earn/Shr=-1.03, P/E=N/A, Mkt Cap= 5.280B
EXCITE INC (Nasdaq:XCIT) 30 9/16, Earn/Shr =-0.89, P/E = N/A, Mkt Cap= 1.555B
LYCOS INC (Nasdaq:LCOS) 29 7/8, Earn/Shr=-3.13, P/E=N/A, Mkt Cap=1.107B
WAL-MART STORES (NYSE:WMT) 65 3/8, Earn/Shr=1.75, P/E=38.79, Mkt Cap=146.2B
LUCENT TECH (NYSE:LU) 81, Earn/Shr = -0.03, P/E=N/A, Mkt Cap=106.5B
ELI LILLY (NYSE:LLY) 72 1/2, Earn/Shr=1.74, P/E=42.53, Mkt Cap=79.845B
SMITHKLINE ADR A (NYSE:SBH) 58 1/4, Earn/Shr=1.67, P/E=34.92, Mkt Cap= 64.617B
COCA COLA CO (NYSE:KO) 72 3/4, Earn/Shr=1.55, P/E=48.23, Mkt Cap=179.4B
WALT DISNEY CO (NYSE:DIS) 30 5/8, Earn/Shr= 0.95, P/E=33.42, Mkt Cap= 62.741B
rh |
