SI
SI
discoversearch

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 : Amazon.com, Inc. (AMZN)
AMZN 232.52+0.1%Dec 26 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: sea_biscuit who wrote (41345)2/20/1999 2:15:00 AM
From: KeepItSimple  Read Replies (2) of 164684
 
>Well, are you saying that valuations such as PSR, P/E ratios are not important?

Let me put it this way. You can manipulate your PSR ratio by losing money like mad, but you will go bankrupt as soon as your cash runs out.

You can't manipulate your P/E ratio, without running a profitable business unless you want to just break the law and cook the books outright. Covey knows exactly how far she can go and stay out of jail- so she is not likely to pick this solution.

Since PSR can be easily (and legally) manipulated by simply losing cash, it has no value as a measurement of what a company's value should be.

This whole problem came about because wall street only values revenues when it comes to internet stocks. So what do you think the internut companies focus on? Revenues! Who cares about profits! Look at the stock prices of normal profitable companies. They are trading for 100x less than the internuts!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News