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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (10804)7/18/2005 6:22:53 PM
From: Crossy  Read Replies (1) | Respond to of 37387
 
Paul,
each of us is the master of his own fortune..

you don't see competitors trading for a PSR of 2 because they are just not growing enough like IPII. I think I made the point clear. At ZERO growth, IPII would be worth PSR of around 1. Everything else comes on top. Now the question is how much this "on top" is exactly..

Another hint: If you did nothing waited one year holding the stock, assume constant profitability and just wait for one year - if IPII'S growth rate still comes up at 40% then PSR would shrink to 0.7 by that time if the stock didn'T move from today's price. Obviously higher growth does justify a larger PSR..

rgrds
CROSSY