Ram Rao,
LUKOY is trading at 0.18X Sales, and it has earnings (especially with a devaluation. Also, oil exports have increased 45% this year.
Amazon.com trades around 30X sales, has no earnings, its market cap was until recently as big as Barnes and Noble. There is no pricing power when selling on the net thanks to "shop bots". So, LUKOY compared to Amazon.com in terms of price to sales is 166X undervalued.
But go ahead, buy an internet stock, buy Intel, buy Dell, but if you want to make money for sure, buy stocks that everybody else hates, yet the companies still make money and have huge market presence. This is called buying low with intent of selling high. I know it is a novel concept as compared to buying perceived quality and confusing it with buying undervalueness.
Finally, think about it, what are the odds the Dow doubles in the next 5 years ??? What are the odds that the RTS doubles in the next 5 years?? Note also, the business cycle may not be dead. |
