The whole point of PE, price to earnings, is how much of a PREMIUM people are willing to pay for a company.
Meaning knowing all the infromation about business's(who is its competetion, what this company has over the competetion, growth rate, potential, etc) is why stocks have different premium.
But AGAIN, these are not FACTS or REPRESENTIVE of what a company is really worth. At the end of the day, AGAIN, something may be worth more to some people than it is to others....the whole point of the market is what price you pay for a business.
Guys like Jim Cramer and CNBC(WHO KNOW WHAT THEY ARE DOING AND PURPOSELY CREATING THIS "authority") are painting the market DIFFERENTLY than what it is which is why you see people losing their money in the market day in and day out and trading for no real reason than they think they should.
CNBC and JIM CRAMERS 5 Million dollar yearly salary does not come from NOTHING.
It comes from all that advertising revenue on the channel.
Who is advertising? BROKERAGES.
So what you say? Well, don;t you get that in order for the horse(CNBC) to eat and Jim Cramer and all those other buffoons wasting their lives talking about "something" they don't understand, YOU(as in all the citizens who work hard and give away their time) need to trade unnecessarily so these BROKERAGES make money and then guys like CNBC AND JIM CRAMER can get paid.
It is all BS. They figured out a way to create a way for them to MAKE MORE MONEY than you could possibly dream, by CREATING this idea that "they are helping you" but they are no different than advertisements for LAs Vegas and Atlantic City.
WHO have they helped BUT themselves?
Exactly. NObody. The MATRIX. A false representation of an area of the world; finance.
How CNBC presents the market day in and day out is rubbish. They don;t understand the value of anything more than ayone else....BECAUSE VALUE IS SUBJECTIVE.
Learn quickly. Think freely.
Under Armour has had a good last 48 months. It has gone up from a low of 12/share in 2009 to 163/share Today(pre-split price). That is a return of more than 1000% i just 4 years.
SO CLEARLY from this the market MISVALUES things all the time or in a way, so "efficiently" prices a company for every worst case scenario, THAT GREAT oppurtunities to buy a business for dirt cheap based on its future potential CAN ARISE and occurs all the time.
Deckers is STILL currently trading at 1/3 the price of Under Armour. These two companies though over the next 36-48 months are going to most likely make the same amount of money.
Do I know the exact future, meaning do I know for sure that Deckers will sell UGG boots next year as well as they sold it this year? Do I know that by the time double profit margins kick in over the next 36 months, that UGGS will not have lost fashion?
No, its the futre. It is the unknown.
But one can use evidcne of more than a decade of popularity that the success will continue and therefore THIS company deserves a much higher premium as the idea of it GOING OUT OF BUSINESS or making less money over the next 36 months is UNLIKEY and in actuality, the company is projecting to make more than double the money they are currently making today with no real necessity of growth for that to happen due to replacing sheepskin with UGG PURE which over 90% of consumers can not tell the difference between the two.
The MAtrix makes you think SOMEONE knows better. The answer is not true. The answer is everything is relative. Something worth something to you can be worth less to someone else. But if you have fundamental reasons and EVIDENCE that yours is true, well, over time, that persons opinion is not going to matter as more and more people realize YOUR truth.
A good day sir. Think FREELY.
But the GAME is quite easy to figure out once you learn how to think yourself.
1) Most stocks are garbage. Meaning, no matter how cheap they get, the business offers nothing in terms of potential growth or high moat. It offers something that can be easily copied.
2)Most stocks especially today are very expensive. WHY? Well, people need to learn that the average person only MAKES SO MUCH MONEY and that money can only be spent in so many places after basic necsessities are met. So ALL THESE COMPANIES in the market are all after the same cheese.
The game is to find the company that the market(again, NOBODY IS BEHIND THE CURTAIN) is making a mistake on. At first, it won;t make sense to you. HOW can this company be cheap. SURELY if it was worth more, IT would be worth more.
Ahh....that is how you have been programmed to think in the matrix and is the reason people don;t look to achieve multi-baggers. They can;t concieve that market can so misvalue a business.
But all it takes is to look i comparison to how the market is valuing one business in the same area as yours and compare it to a company you find riiculously cheap and realize...wow the market DID F up
Be it CNBC putting out hours of "information" regarding "business" or yahoo with their constant alerts of "someone" believing the market is "due for a correction" for this xyz reason(based on no evidence which is then quite obviously bs if there is no evidecne)....but they will constantly create these headlines and bs articles that for one just entering finance or investing....they will learn just by seeing it constantly displayed all the time with these questions...that 1)these people"know" something and 2)this is how the market works.
You just have to find the guy who says something is going to happen and then it happens...then OMG he was right the market corrected. Maybe not 10% but it corrected! lol
The market doesn;t work like that.
Outside of the MAtrix created by media and CNBC, business is VERY BORING.
People get up, they go to their jobs, and then they go home and do what people do.
What the media does though is talk up stocks(papers showing one owns piece of a business and its POTENTIAL future NOT guaranteed to be in existence 1 year from now) as every decade 20% of business's publicly traded go out of business or taken off the exchange.
The thing is some other company comes out with an IPO and becomes a stock and the GAME continues.
Take a look at my posts going way back.
Am I an authority ordained by CNBC? Nope.
My results clearly speak for themselves on this stocks performance the last 13 months and my posts going way back.
But...CNBC will have the clowns who do nothing PRESENT THEMSELVES everynight pretending they aren;t fooling any young kid with an impressionable mind who has not learned to think for himself, that if he just watches CNBC HE TOO will become great.
Just listen to our worthless opinions buddy and you'll be just as "successful" as us.
How successful are they? Anybody ever really listen to these jokers ramble? Nothing coherent. No real arguement. Just mumbling for the hour trying to grab that new sucker who deosn;t understand the game and never listened to a warren buffet or peter lynch speech in his life on how real INVESTING works(present value-future cash).
Nope. Just listen to us pretend and waste time making stuf up.
But oh wait....we are giving you investment idea is the bs.
WHO ARE THEY to give investment idea WITH NO TRACK RECORD?
What is the use? Well, there is the false premise built into "FAST MONEY" that they are successful at what they do despite NEVER knowing how much these guys all lost(and they have lost plenty).
Nope. Just looking to make sure the brokerages sucker i another guy to trade ridiculously with no real idea what he is doing.
BUT I know what I'm doing ;)
THEY, as in the media, PRESENT AN IMAGE of "authority".
But they are nothing. They don;t know much more about you except they are tellig you the news. They don't "understand" the news or the world better than you or I except that they are part of the mind $$$$ of AMERICA.
That is it. They are just in on the joke.
Rhis is why Carl Icahn and warren buffet and even myself are who we are. WE DON'T LISTEN TO OTHERS. We make up our opinions and we do the math.
We don;t PRETEND Jim Cramer somehow knows anything about everything or that guy adami who made a living trading precious metals understands the value of other companies or those that are in TREND and therefore getting the most cash from the consumer.
No sir. It is all mind control.
You got guys like Ackman who buy trash like JC PENNY when he could have bought up Deckers or some other company just by looking at managements holdings and listening to their forecast of double digit profit margins.
Why didn;t they buy this? Virtually in the top 40 stocks the last 13 months.
Because the joke is these guys are getting paid for $$$$.
Then you have guys like Guy Adami who trains for an iron man race(kudos to him at 49) but then thinks its morally okay to pretend he knows anything about anything regarding a multitude of companies in his likely exhaustive state.
Ahh....but its just entertainment. No harm done. Then what is the point if it just entertainment. Why is it entertaining to hear people make stuff about companies they know nothing about?
I just don;t get the bs.
79M was still available this quarter to buyback stock.
UGG reviews on websites are all solid. Merry christmas.
The money will continue flowing to this stock as EVERYONE is aware that UGGS are not a fad and in fact are very IN FASHION.
Again, standing ovation for management buying 221M worth of stock back and holding on to their shares to show they knew the business was worth more. Still holding on to a mountain.