Replies to post #85802 on Savvy Trades and Investments

[wadegarret]

R59- VIAC & DISCA

These stocks are no bargain IMO. I mean just because they have come down dramatically doesn't make them cheap. According to Yahoo Finance & Nasdaq Websites, eps analyst estimates show only avg 6% growth going forward for VIAC vs an 11 PE going forward, and avg 14% growth expected for DISCA, with a 13 PE going forward. If we go by historic PEs for both of these, they are still over valued. I mean all this brouhaha about streaming, yet growth going forward has actually slowed vs analyst estimates going forward from a few years ago(from my memory when playing DISCA), when both had single digit PEs most of the time.

Re, PEs in general are off the charts as well. I just went to Google, and looked at Nasdaq, Dow, and S&P historic PEs, and present PEs. Historic PEs for the indexes range from 14-17, but are now around 40 for all three ! In other words, PEs are now around 150% higher than normal. How can one be comfortable longing stocks in this market ! Warren Buffet has a higher % of cash on the side in Berkshire Hathaway than any other time in history, and his famous Buffet Indicator is off the charts at 2/1(time to sell stocks !).

[whoswho]

This seems to be reason for the Friday fire sale. If the margin calls have been completed, we may experience a bounce back.

https://www.cnbc.com/2021/03/27/archegos-capital-forced-position-liquidation-contributes-to-viacom-discovery-plunge.html