Great To See Grossly OverVALued Stuff Getting Hammered....
kind of what I was getting at too....but I wanted to see exactly what values he defined for the two he liked.
I saw CAKE popped today because of a take over possiblity.
Grossly overvalued also implies to me like a big value gap...25 - 100 percent just to offer an opinion. I tried googling for some guidance as applied to stock prices...many uses, few quantitative definitions. On one hand the overvalued seems to imply getting near the limit on the upside....I could see that applied to PNRA back at 60...but at 35 ? My silly little rule for high flyers that I like, is to be interested at around 50 % of the high (though I have seen some recently drop to 30 % of high)....so I guess I decided it was around fair value when I bought.
I seem to recall someone of note saying it is better to buy a good company at a fair price than a fair company at a great price....I think a lot of Panera as a product/service based on 5 years observing the stores and customer base, and personally eating there 1-2 times a week.
Well, that's is a problem with adages.....they only apply in general. But my point was that a year or two from now, if I paid 35 or 30....it will not make much difference, I will then be deciding to sell for X or X+5. If I am trying to trade short term (and I did here with most of last months buy)....it makes a difference.