I hate to do this to you, but I am going to cite some valuation data from the darkest hours of 2008. Why am I partaking in such an adventure?
Because I can.
It’s hard to get an apples to apples comparison between the tech stocks of that era and today; but I will try to scare you nonetheless.
I looked at names like CRM, AKAM and AMZN. Out of the three, I think it’s fair to say CRM best embodies the scams that are traded today.
Back in 2008, CRM traded down to 4x sales, 6x p/b and 17/fcf. In other words, CRM would have to trade down by 50%, from current levels, to repeat the glory days of 2008. Now if we are to apply the same stringent valuations to FB, TWTR and YELP, well, it gets decidedly uglier. All of those stocks are trading above 15x sales. They’d need to drop by 60-70% from current levels to get down to the apocalyptic Santelli levels of 2008.
Now is that a reliable benchmark to shoot for?
Absolutely not.
But at least you now know that if YELP should trade down to $15 again, you should probably back up the truck.
In all seriousness, these tech stocks will bottom for good once mergers and acquisitions in the space smacks short sellers in the face: a YELP buyout, or maybe a LNKD merger. We need to see real companies with real earnings saying “FEYE IS RETARDO CHEAP MORONS. I’LL BUY THE ENTIRE COMPANY NOW, thank you very much.”
As an aside, I bought QQQ on the close yesterday.
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I enjoyed your last post which poked fun at people from pgh, can you further indulge me le fly
Good post, awesome track. Under 45 I’m in for that yelp
Had to sell the pop on KNDI and FB. have a loss on YGE ( holding for a break even. (one day)
“acquisitions in the space smacks short sellers in the face”
indeud
I NEVER buy what Cramer spotlights on his show BUT! Yesterday he had a company on DXCM they make a blood glucose monitoring Iphone App for diabetics (Fly, talk about an old man stock) this is one with a bit of sex appeal. Look at the chart. Its ready for a pop. Bought in at 31.91
Sloop
Funny you mentioned that. I heard him while driving talk about it and I looked it up. Great story stock
we shall see. Have a tight stop in for now.
WWE stock looks like it has been put in the ‘camel clutch’ by the Iron Sheik today, what a pounding!
That is the crap you buy when you hate your money.
can anyone give me one city that produces more fat fuckin ugly ass idiots than pittsburgh….just 1, thats all i am asking
I’m assuming you are from a degenerate city such as Cleveland / Cincinnati, or a city with Neanderthals running about the streets like Boston. Regardless, get your facts straight before bashing the thickness of Pittsburghers: http://www.usatoday.com/story/money/business/2014/04/06/americas-thinnest-city/7306199/
you must be what we like to call a yinzer cube – fatter than fuck, dumber than shit, uglier than all hell
+1
San Antonio? https://www.youtube.com/watch?v=iUsJZzW-a-g
Closed my DUST DSLV DGLD .. not holding these through weekend
http://www.cnbc.com/id/101669909
So, when do you think that plane that disappeared will show up with nukes on board? I’m guessing this summer.
If you think its in the Ocean you are dumb as rocks.
Let me guess: “big boy” is a Flyer fan.
All of the telltale signs are there: an ironic inferiority complex to an inferior city, stooping to sophomoric insults i.e., “fat, ugly, stupid”, etc., for his next trick I’m certain that he will just say that he will kick my “stupid yinzer ass” or some other Neanderthal bravado that embodies Flyer fan.
Filthedelphia… the anus of Pennsylvania.
I bet ur a fat fuckin yinzer who is stupid as shit and a ugly bitch
EOD erection