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  • MegoBMW MegoBMW • Jun 3, 2008 3:08 PM Flag

    Wake up rvbd's longs

    I really don't understand how you rvbd longs think that rvbd deserves a PE of above 100. With earnings this Q of 10 cents????????

    Can any one tell me why this company is double the valued of bcsi when bcsi makes more revenue (bcsi made 89m this Q vs. rvbd of only 73m) and more earnings (bcsi can in at 33 cents this Q vs. rvbd of only 10cents)???????? Still rvbd’s valuation is 1.12b (at today’s stock price of 15.6) while bcsi’s valuation is only 679m?????

    Why the hell do you think rvbd should be trading twice as high as bcsi?

    Wake up.... this company should be trading at a PE of about 35. At this level, rvbd’s stock should be $11. I am not bashing rvbd, I honestly think it should not be valued more than that.

    I truly believe that bcsi is a much much better value than rvbd at current levels.

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    • stoptawkn2 stoptawkn2 • Jun 3, 2008 3:24 PM Flag

      If riverbed was a mature company with limited growth, then you'd be right. But growth companies show high PE's and have since the early 80's (and in particular in the 90's with the rise of the fraud only analyst). This is because people assume both revenue growth and decreases in margin to be significant as the company matures.

      Same reason people can't tell the difference between a recession and an economic expansion, the invest with 'beliefs' and TV gibberish instead of information. Probably the strongest argument against privatizing social security one can think of are the number of slow growing high PE companies without serious long term strategies to justify them.

      • 1 Reply to stoptawkn2
      • MegoBMW MegoBMW • Jun 3, 2008 3:38 PM Flag

        Your argument is a highly risky speculation.... Not all growth companies trade like this.... bcsi is a growth company and still has a much more reasonable PE than rvbd. Rvbd's investors at the current price are playing with fire... Rvbd can not and will not be able to continue holding the current irrational high valuation. Their revenue declined Q over Q. This is a strong sign of contraction going forward.

 
RVBD
15.489-0.46(-2.89%)May 22 4:00 PMEDT