HAPPY FATHERS DAY TO ONE AND ALL...
Not sure if you are keeping score, but when I make a mistake about the facts related to Elite, I make it clear that I have errored. Hard to have an honest and forthright discussion about the company if we do not make it clear what is fact and what is not. In addition to admitting error, the next most important thing for readers of the Elite board is to recognize the difference between fact and opinion. Particularly if that opinion lacks evidence or links in support. Opinions about Elite are fine, but the reader gets to determine if they are grounded in experience and education. Because of my background and having testified in court under the Daubert v. Merrill-Dow test for expertise, I approach the discussion of Elite with the same basis. It is about perspective born of education and experience. It is why the complexity I experienced working for a global firm enables me to weigh Elite's management strategies and actions and provide a grounded assessment. It does not mean I am always right, but it does mean I try to be.
So, as to that, I mentioned that any third party assessment of Elite to determine its value (whether done by them or another firm) would involve various tests for value and one of the most commonly accepted in the business world is a discounted cash flow analysis. While that involves math, as with any multiple regression formulae it requires certain common assumptions - for example the discount rate, it usually is 10%. Then there is a variable that is based on the SEC required reporting by the company on the quarterly or annual report, it is a variable depending on a company's earnings and it is not subjective. However, there are two other variables that require reasonably subjective estimates based on what the company has done and where it might go over time, which means there is data to support the estimates. No getting away from these as they are and can only be subjectively drawn from an assessment of real possibilities - grounded to use my term. So, let me ask (and there is no exact answer, which is why there are ranges in DCF scores)...In percentages, what do you think Elite's short term growth will be (3-5 years) and what might be their growth thereafter (the formula does not have a terminal end)?
If we can get to some agreement, I will do the DCF...So, what say you or anyone else? And just to be clear, the formula does not use zeros for either growth category. I guess we can say the formula requires mindfulness.
AI
