AMZN longs are playing with fire.
Good company; stupid valuation / market cap.
http://online.wsj.com/article/SB125682780621816085.html?mod=WSJ_hpp_LEFTTopStories#articleTabs%3Dcomments
Friday, October 30, 2009
Wednesday, October 28, 2009
Tuesday, October 27, 2009
A couple of good reads for today:
Jeremy Grantham on the market's over-valuation and possibility of severe correction:
http://www.creditwritedowns.com/2009/10/jeremy-grantham-the-market-is-25-overvalued-15-correction-coming.html
Karl Denninger rants on about AIG / Fed / NY Fed / Geithner / Paulson:
http://market-ticker.denninger.net/archives/1547-More-Arrogation-Of-Power.html
I recommend that you read both as you contemplate the silliness of AMZN at $124.
http://www.creditwritedowns.com/2009/10/jeremy-grantham-the-market-is-25-overvalued-15-correction-coming.html
Karl Denninger rants on about AIG / Fed / NY Fed / Geithner / Paulson:
http://market-ticker.denninger.net/archives/1547-More-Arrogation-Of-Power.html
I recommend that you read both as you contemplate the silliness of AMZN at $124.
AMZN -- $124 = Crazy; Stupid Price
http://seekingalpha.com/article/169020-short-amazon-risky-investment-at-current-price
AMZN for some reason gets away with reporting a mythical Free Cash Flow number, that treats not paying its bills (carrying huge accounts payable for inventory) as Free Cash Flow.
This, of course, is ridiculous.
No matter how you slice it, even reporting good numbers and decent growth, AMZN has something like an 80 PE.
For a retailer !
It may be the bubble pump flavor of the day; but at $124, it is way too high.
AMZN for some reason gets away with reporting a mythical Free Cash Flow number, that treats not paying its bills (carrying huge accounts payable for inventory) as Free Cash Flow.
This, of course, is ridiculous.
No matter how you slice it, even reporting good numbers and decent growth, AMZN has something like an 80 PE.
For a retailer !
It may be the bubble pump flavor of the day; but at $124, it is way too high.
Friday, October 9, 2009
BIDU -- what to look for
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