AI
Thursday, June 26, 2008 2:03:58 PM
lol good stuff valinv2 
Let's try then to concentrate on "value" with respect to the blatantly obvious/stark contrasting numbers: extremely low pps : extremely high revenues.
I break down the revenue dynamics. A straight PSR would ignore the extremely low net margin and in my mind the dollars up top generating earnings down below is obviously affected by the costs in between.
So I used the PSR model that takes Market Cap + Debt / Revenues. For 2007 the PSR was ~.67 but for the trailing 12 months the PSR is ~.24. Had not done the latter math until today. Had originally conceded the mildly undervalued figure would change based on accounting for 1Q 2008 numbers. Taking into account the 1Q numbers I agree, mildly was a bit ignorant lol-- doh!
Let's try then to concentrate on "value" with respect to the blatantly obvious/stark contrasting numbers: extremely low pps : extremely high revenues.
I break down the revenue dynamics. A straight PSR would ignore the extremely low net margin and in my mind the dollars up top generating earnings down below is obviously affected by the costs in between.
So I used the PSR model that takes Market Cap + Debt / Revenues. For 2007 the PSR was ~.67 but for the trailing 12 months the PSR is ~.24. Had not done the latter math until today. Had originally conceded the mildly undervalued figure would change based on accounting for 1Q 2008 numbers. Taking into account the 1Q numbers I agree, mildly was a bit ignorant lol-- doh!
How many legs does a dog have if you call the tail a leg? Four; calling a tail a leg doesn't make it a leg.
Abraham Lincoln
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