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Wednesday, 12/11/2013 7:41:56 PM

Wednesday, December 11, 2013 7:41:56 PM

Post# of 148373
How a Stock’s “Innogration” Score
Tells Me When to Buy It

You can get whiplash trying to follow a tech stock’s price.

Last September, Apple was trading above $700 per share, only to drop below $400 by the following March. $280 billion in market cap evaporated in just seven months.

At the same time, Facebook went public at a price of $38, only to quickly drop below $20. Just recently it rallied above $50. Facebook has gyrated from a market cap of $46 billion to $132 billion, all within the span of 16 months

Did that much at these companies really change that fast? Of course not.

So how do you determine a fair price to pay for a tech stock when everyone around you is behaving irrationally? Read on, because I’m going to tell you.

Conventional stock-valuation tools don’t work with tech stocks because it’s impossible to project earnings growth more than one year into the future in this fickle industry.