Zynga And Workday In Parallel Lives? [View article]
No stock stays overvalued forever, that's one of the only things we can be sure of. WDAY will eventually come back down to earth, we just have to be patient.
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
Why did all of those investment firms recommend that investors buy overvalued dot-com stocks at the height of the bubble? Probably so that they can sell their own shares before the eventual crash. It's always best to be an independent thinker. Don't listen to these scammers and their buy ratings.
Zynga Is A Strong Buy According To The FCFF Valuation Model [View article]
I am always skeptical when I see any projections, especially optimistic projections. People need to learn that precise forecasting is not necessary in order to be a great investor.
When it comes to a company like Zynga, we need to ask ourselves only one question - what is this company's DURABLE competitive advantage? The answer to this question is that it doesn't have one. Social media gaming might have a great future, but this doesn't necessarily mean that Zynga will be the "top dog" in this industry.
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
You must value a company like that based on its enterprise value. The company has almost no cash, and its debt is higher than its market capitalization. This means that its actually a lot more expensive than it looks at first.
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
Also, nobody seems to be talking about the lock-up expiration that's coming up in less than two weeks. I think some investors are in for a surprise when the stock plummets.
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
Yes, I was a little surprised too that very little has been written about how overpriced WDAY is. If you guys want to see another extremely overvalued stock check out CHTR. Not only is this stock grossly overpriced, the balance sheet looks awful as well. Its a perfect short, in my opinion.
Even if markets were perfectly efficient (which they are not), it would not be very smart to use WACC because, as you guys pointed out above, it uses beta in the calculation. In other words, in order to figure out the cost of equity we would have to use CAPM, which is just a bunch of nonsense. Anybody who truly believe that beta is a measure of risk is either crazy or an academic. True risk cannot be calculated even though it would be ver helpful if we could do it.
Contrary to what most people learn in business school, the discount rate should always be your minimum required return (which should be higher than the cost of debt if the company has any). Buffett's minimum required return is 15% and that is what he uses as an approximate discount rate. I am even more conservative, my discount rate is 20%. In other words, I need a long-term return of about 20% per annum in order to be satisfied. Doing it this way is simple and you don't have to mess around with giving each individual company its own discount rate.
Zynga And Workday In Parallel Lives? [View article]
Zynga And Workday In Parallel Lives? [View article]
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
Netflix Is A Fragile House Of Cards [View article]
By the way, Life of Pi is a great movie!
Netflix Is A Fragile House Of Cards [View article]
That's a link to "The Avengers" movie. Learn to navigate the website and you will never need Netflix again.
Netflix Is A Fragile House Of Cards [View article]
Zynga Is A Strong Buy According To The FCFF Valuation Model [View article]
When it comes to a company like Zynga, we need to ask ourselves only one question - what is this company's DURABLE competitive advantage? The answer to this question is that it doesn't have one. Social media gaming might have a great future, but this doesn't necessarily mean that Zynga will be the "top dog" in this industry.
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
Workday: Overvaluation And Lock-Up Expiration Will Cause Shares To Crash [View article]
Quad/Graphics: 15%+ FCF Yield [View article]
Netflix Is A Fragile House Of Cards [View article]
Make sure you have adblock to block the ads. Click "continue as free user." Then click "play." That's it!
Quad/Graphics: 15%+ FCF Yield [View article]