I'm done trying to understand our ridiculously low valuation, for if there is a hidden unknown, a bogeyman lurking in the lab, let him come forth (for how much lower can we go?).
I'm done worrying about 10-20% swings, for MNTA has cash, no foreseeable dilution, solid management, the ability to execute, potential huge events on the horizon (mCopax), a leading position in the FOB race, favorable political tailwinds, excellent regulatory standing, and the proven ability to execute (and generate profits).
I'm done trying to understand the market for I'm fairly certain it is controlled by fear and greed, feuled by nefarious media, exacerbated by "clever" math geeks and program trading in ways that we can't begin to comprehend (and, as we've seen in the past, that even the best and brightest from Cal-Tech and MIT can understand either).
...so....If MNTA doesn't close above 25-30 today, I will put my considerable house on the market today, at a steal to ensure a quick sale, and when it does sell, I will put all of the proceeds into MNTA and live in the caretaker's cottage, renting it back from the new owner.
Anyone with me?
Well if Italian bond yields are falling, that increases the possibility that the stock market might take a break from its daily declines. And certainly today is not as bad as yesterday.
Just keep your eye on those yields. If they start to go back up over 6% there will definitely be a follow through on yesterday's sell off. Italy/Spain default -> european bank collapse -> global financial institutions collapse -> global depression -> World War 3.
That's one way it could play out. The plebs are getting restless.
vin, you make me want to say sometime negative for old times sake.
MNTA is down because some players sell to raise cash, hard to tell when that stops. But when it does stop, MNTA will bounce back up pretty quick.
Hmm, I never thought you would be more optimistic than me. I think if the jobs report is bad tomorrow, we could see another sell-off like today. Getting close to buying more MNTA now.
There is a reason why MNTA is trading at a 5 P/E ratio. Three words: future earnings risk.
If the current level of earnings were guaranteed to continue for the next 5 years, the stock would be at least $40 per share, possibly as much as $60 or even $80.
What it will take to move it there is more certainty on that front. Until then you have to be satisfied with this ridiculous P/E, because there is no guarantee that the E part of it will be as strong next year.
I'm not sure if it's a good idea to bet the farm on one stock, but I would say your chances are way better here than at a roulette table, and if you do win you'll certainly get a better return than the mere double you would get from betting on black.