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  • pricewowens pricewowens Jan 25, 2013 9:06 PM Flag

    EPS of 8 pennies. p/e of 3,900. A POS but the thieves luv it!

    Buyers are not idiots. They just know when to buy. Hopefully they will know when to get out. The art of shorting gets down to knowing when to put in your initial position. Right now the pe is high. But with the level of sales they are achieving (and growing each quarter) any change in operations that could alter the margins just a couple percent could result in hundreds of millions in profits and could amount to dollars in earnings rather than pennies. That could change the pe from 3900 to 100 in just a qtr or two. With this stock growing sales the time to go short will be when you see the sales growth slowing down. Now is not the time but it is getting closer now. Much closer. Listen to the earnings call and have patience.

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    • Because a PE of 100 makes sense for a $100B+ market cap company. What is the cash flow yield? Were it to pay a dividend (it cannot), what would the yield be?

      This is simply a greater fool play. They never end well...

      • 2 Replies to techstrategy
      • Well said. Compare the excessive AMZN valuation to companies like CRUS, which actually has profits - EPS in the 99 percentile range, margins of around 50%, PE ratio of 10 and in spite of having beaten earnings estimate consistently for the last 10 quarters, is selling at 35% below its all-time high. The markets make absolutely no sense to me. Logic has no place in the jungle we call "Wall Street".

      • Indeed it is a greater fool play. And 100 pe is still high but it highlights the limitations of pe analysis on this company. It could get to 40-50 or be much higher depending on how they manage their margins. Cash flow yield should follow earnings but in their case it never seems to do that. But cash flow has increased. I am negative on the company's valuation but find it amusing how people use pe as a basis to judge it. I think measuring the sales growth will be the key area to look at to determine when this folly ends.

490.48+8.41(+1.74%)Feb 10 4:00 PMEST