Silicon Investor (SI) -- The First Internet Community

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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (71785)	10/12/2006 5:22:18 PM
From: TimbaBear	Read Replies (1) \| Respond to of 110194

The main reason I feel higher interest reduce values is multiples to cash flow versus the risk free rate need serious adjustment that can only be made up by higher margins and strong top line growth as an offset. Take 4.7% which equates to 21.3 risk free multiple versus at 7% the risk free multiple drops to 14.3.. Good argument and traditionally has proved itself repeatedly. Question is: "Is it the same kind of business environment this time?" Whoever accurately discerns the answer to that can make a lot of money by positioning themselves ahead of the crowd. I have more questions than answers though and whatever answer I could give to this would be, at best, incomplete. Timba