Tag Archives: Historical Valuations

Facebook – A Bargain In The Rearview Mirror

Here’s a link to an article from ABglobal.com that shows how exceeding expectations can actually make ‘expensive’ stocks seem very cheap in retrospect:

LINK: Growth Stars

This chart that illustrates the differential between Facebook’s earnings expectations and actual earnings is quite enlightening and goes to show the degree to which analysts can underestimate new business models:

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David Rosenberg on Yellen’s ‘Uncertainty’

In this link, eminent economist and market strategist David Rosenberg highlights many of the issues that are currently contributing to ‘uncertainty’ in world markets:

David Rosenberg on Yellen’s ‘Uncertainty’

For the sake of clarity, ‘uncertainty’ generally means ‘pessimism’ when used by economists. However, they should not be confused as one and the same thing.

Rosenberg lists off a number of topics that contribute to a sentiment of pessimism. Unfortunately, his argument is far too one-sided. He concludes his diatribe as follows:

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A Note From Chief Maverick

Here’s link to my mentor and uncle Mal Spooner’s most recent post. Mal has over thirty years experience managing investment portfolios, founded and ran an award winning mutual fund company and is now a professor to students that probably can’t believe their luck in landing a prof like him.

In this post, he cuts to the heart of the matter about equity valuations and oil prices. Having invested in and financed oil companies throughout his career, Mal possesses a fundamental understanding of the oil industry that goes far beyond the daily permutations of the price of oil. There is a massive difference between charting oil prices and having gone to visit countless drilling installations and understanding the realities of the oil business.

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A rant about historic valuation comparisons. The first of many links to “The Reformed Broker” Josh Brown.

I started reading Josh Brown’s “The Reformed Broker” blog a couple of years ago. I also attended Citywire Berlin in November 2015 where gave a fantastic presentation. In this article, he attacks the tendency of some analysts to hone in on certain market data without attempting a broader conceptualization of what was actually going on.

LINK

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