Open Text Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Open Text

OTEX 33.67

-1.8%

Nov 14 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tyler Lawton who wrote (211)	1/17/1997 9:10:00 AM
From: Michael Burry	of 1195

Tyler, A negative PE like -9.3 is meaningless and not comparable to a positive PE. Reason being that there is no value in the loss, and the larger the loss, the smaller the negative PE will be. If one has to have a negative PE, one would want a number like -1000. Most analysts and rational people reason that long-term growth greater than 25% is very tenuous. Reason being that the types of returns associated with such growth will attract investment capital/competition. 40% growth for the next five years would be spectacular. As such, it is also highly improbable. Also, everyone should realize that all studies of stock prices show a correlation between earnings and stock price only when the time horizon is on the order of years. Earnings analysis and fundamental analysis is not particularly useful if one's investment horizon is <1 yr. OTEXF's earnings are not at all predictable in my opinion. Whenever you are dealing with a company that is predicted to move from chronic losses to glorious profits, be suspicious. Zack's ranking is based on CHANGES in analyst recommendations, nothing more. So if the stock has had a lot of sell recs converted to a lot of buys recently, Zacks would give the stock a high rating. Mike

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next