Universal Travel Group Message Board
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Updated P/E of 3.25 at the current PPS of $4.55 ......
You need not worry, as respect is on the way along with continued strong earnings. Also ..... LOL at the short that stepped on the gas at $4.15 a couple of days back. I doubt he's feeling very cheerful today. He should feel like an incredible dummy for shorting a strong growth stock with a P/E of 3. Alot of people jumped on the bandwagon (short) when the latest blog came out. Just like the first attack, the only shorts that made money were those that were already short before the attacks. Those that shorted after each attack had their lunches handed to them.
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Shorting anything that is not a company with an extremely-high-bankruptcy-chance-with-no-equity at a P/E of 3 is simply foolish. Even with absolute-proof-of-fraud, you can only push down a stock so far in most situations before the ignoring-buying-demand pushes it back up. The upside to a short at a P/E of 3 is simply not good enough in almost every situation to warrant the risk.
So yeah, buying a company like UTA at $4.1 is a no brainer. The worst "reasonable" case scenario, IMO, is we stay at a low evaluation during these attacks then start climbing over time. Personally I think we will be over $5.5 in a month's time.
-Fernando- 3 Replies to drexion2004
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Oh Drexion 2004 (Fernando), you are heading for a fall someday, if not on this stock then on another. The notion that UTA is a good value even if an absolute fraud is very dangerous. Enron was once worth $70 billion, I believe. Now it is worth zero. Companies guilty of fraud are fined and delisted. Their execs go to jail and their customers, ah, lose confidence. And, often, what seemed to be cash turns out not to be cash, or there are undisclosed liabilities.
Looking for "good values even if they are frauds" is probably the single worst investment style a person could have. But good luck with it. -
" The worst "reasonable" case scenario"
is that the new audit firm says that they will not be taking on UTA as a client. If that happens then this stock is at $1.5
I'll admit, if they take on UTA as a client, than at least in the near term this stock will run. -
Would be nice to have more shorts---I like to see them lose their a**.
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Compare it to (OPEN) with a P/E of 163-lol
- 1 Reply to easily_adaptable
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PE=2 if you subtracting 2.19 cash per share.
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