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mouton29

04/29/08 12:32 AM

#10382 RE: doofus_king #10376

<<how is that a useful comparison, considering, as you say, that aapl is as far from gtcb as possible>>

Maybe he was responding to your argument "that the intrinsic worth of a stock, is only rationally valued by the discounted worth of future cash flows" That means, I guess, that the discounted worth of AAPL's future cash flows decreased by 70 billion or so as the stock declined by $80 and then recovered $48 billion or so. And that today, it increased $2.5 billion or so. I guess that can be explained by changes in the discount rate.
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vinmantoo

04/29/08 11:32 AM

#10390 RE: doofus_king #10376

My AAPL example is very valid. The market priced APPL as a greater than $200/share stock, then a $120 stock now a greater than $170 stock. The latter two with essentially zero new AAPL specific information.

Yes I have checked my emotions and I feel disgusted and a bit anxious that GTCB is so low. But that doesn't change my view that it is greatly undervalued. GTCB management does share a good deal of the blame because of their partnership in a few weeks comment way back in Dec and the fact they didn't build up more of a cash cushion. But that doesn't change my view that GTCB is worth a hell of a lot more than what the market says it is right now. The cash crunch is killing the stock price, and once that is resolved to buy more time, then I will feel a lot better. Of course in the near term, the terms of the deal could either lower or raise the stock price. This uncertainty has killed GTCB stock as the low volume shows as everyone is waiting to see exactly what this purported deal is.