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 : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (58491)	11/15/2016 4:44:18 PM
From: E_K_S	Read Replies (1) \| Respond to of 78748

especially if they have stale inventory and/or it becomes obsolete w/ an upgrade in their fitbit band/watch. What they do have is a captive user/subscriber base that they need to monetize. FWIW, was out w/ a friend that had her fitbit band but was measuring her heart rate all wrong (maybe bad calibration) all wrong. My smart phone app Sportypal.com) was working as good and does not require a special fitbit devise. We did record the same mileage results from our walk (my sportypal.com app and Android app) calls out my split times into my Bluetooth headset. Still it's all about the user base and if one can continue to sell devises, apps and or new exercise programs to that group. EKS

To: MCsweet who wrote (58491)	11/15/2016 6:04:50 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78748

Well, I value a business based on the cash they have on hand and how much I think they can generate (and not fritter away) in the future. Of current assets of 1.4B, only about 200M is inventories. Not bad for a company with a MC of 2B and no debt/ minimal leases. Then there's the question of whether the business is worth anything. My sense is even with zero growth 7x EBITDA is pretty conservative. Again, if it truly is a fad product that might be a fair value (GRPO and KING come to mind). All hardware companies ultimately kick the can, but some (like AAPL) do OK in the meantime. It's hard for me to assess what period or methodology your experience with P/ B in tech stocks is drawn from. In the late 90s I wouldn't be surprised if tech stocks had book like biotech does today (i.e. lots of intangibles and goodwill).