Professional Equity Analysis - the Pursuit of True Value 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.

Strategies & Market Trends : Professional Equity Analysis - the Pursuit of True Value

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Reginald Middleton who wrote (26)	1/27/1997 4:23:00 PM
From: cape radical	of 102

i think that it would be best to focus this thread on evaluating competitors. this is where we can really see what the market thinks and how it reacts vs. the hype. two immediate cases come to mind: USRX and ZOOM ESST and CUBE according to my calculations, USRX is creating wealth and ZOOM is not. this is reflected in the prices of these equities. ESST is creating wealth and CUBE is not. one can see evidence of this in the movement of the share prices. i believe that the cost of capital value that you assumed for CSCC is awfully low. i would assume ca. 20% for any unleveraged high tech company based on a beta of 2. a beta of 1 is ca. 12%. do you assume 100% of sales and marketing as investment capital? or do you use a fudge factor and assume that 50% is investment and 50% expense? i find it difficult to assume that all of S&M is invested capital. you are on the right track. we must focus on value but we must investigate the various interpretations of value. keep plugging RCM! this beats emotional hype.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next