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Remember friends, Sugarr's grandma will earn $0.80 for every $20.00 she invests in US Government T-Bills. Since Avid won't come close to 80 cents this year, has never earned 80 cents before, and is not expected to earn anywhere near 80 cents next year, why do you believe it is worth 30 times earnings? That is $20.00 per worthless share?
I appologize in advance for using numbers and asking a math question. Feel free to answer my query using smoke & mirrors.
Like it or not, 3 years from now, Avid will be trading in single digits. This is a 99% certainty. Along the way, many novices will be fleeced as management and people like me cash in. This saga has been played out for as long as I've been alive.
"Remember friends, Sugarr's grandma will earn $0.80 for every $20.00 she invests in US Government T-Bills. Since Avid won't come close to 80 cents this year, has never earned 80 cents before, and is not expected to earn anywhere near 80 cents next year, why do you believe it is worth 30 times earnings? That is $20.00 per worthless share?"
I think you'd better re-evaluate..78 cents is now the guidance and thats the midpoint of revenue guidance..
You cant "cash in" unless you know when...anyone can predict that a company will eventually be out-teched or go under due to poor management...I do not know how you plan to make money on your prediction unless you know precicly when it will happen
First, allow me to congratulate Sharon on his victory. Having said that, I beg to differ with you, Fica, on the appropriate Avid p/e ratio.
The p/e should be somewhere in the neighborhood of a company's expected long-term average earnings growth rate. As Avid has been experiencing negative earnings, a positive result for 2002 translates into that mystical quantity known as "infinity".
Based on the above, I have no problem with Avid's 30 p/e. In fact, I predict a triple-digit p/e before too long.
I also agree with Imanedit that no one can predict earnings (and so why try) and that unless you know the tops and bottoms of stock prices, you cannot make any money. What's this nonsense about being right in 3 years, a joke?
The Warren Buffets of the world are finished. This is the New Millenium and it belongs to day traders.
I must go now and take my medicine.
I'm surprised at you. We went over this at the Avid Group last night.
Avid's claim they should trade at 38 times earnings is based on "next" year's projected earnings (that's 2003 for the numskulls who are already confused).
Like you said, they never earned a dime yet, so their actual p/e is an imaginary number....unless negative p/e's are acceptable.
Next year we win...tomorrow we'll be the best....wait a little longer.....the future is bright.......forget about actual results......2002 is already over.....we are forward thinkers.......we don't dwell on the past.........soon we'll make more than Grandma.........
I love you ...........
You're only a day away..........
DTV, your boss says to wake up and get her some coffee.....out of that cube.......stat!
That was a good one.
I can see that my knife is still planted firmly in your gut.
Whether you know it or not, the vast majority of professional traders think you are the idiot.
They figure it out by reading what you write. You can't help it; you can't defend against it.
It's just you.
Keep dreaming my trailor park, goofy friend and remember.....
I like you and so do many others
you are a winner
mommy is proud
how many aliases are you under anyway?