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Lee Meyer

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  • Google Solidifies The Future Of Glass With Investment In Himax [View article]
    Kudos for being early on this.
    Jul 22 11:07 AM | 1 Like Like |Link to Comment
  • Why Tesla Is Grossly Overvalued, Even If Everything Goes Terrifically [View article]
    The weighted average cost of capital for any company is equal to the risk free rate plus the equity risk premium for the market. The risk free rate on the 10 year is 2.5-3%, the equity risk premium for the market is about 4%. That puts TSLA's WACC at around 7%. Using your US$18.6bn EV for TSLA and a WACC of 7% brings the share price to US$105. However, TSLA deserves a much higher EV/sales than BMW. Did you ever consider that BMW's EV/sales is so low because it's in a sunset industry and is being penalized? BMW may make nice cars but the internal combustion engine is going the way of the Dodo bird and its valuation reflects that. BMW is living in the stone age. On a PER, BMW trades at 9x earnings, in-line with most old-world automobile companies which are ex-growth and facing end of life. TSLA is part auto company, part tech company, and deserves double the multiple. Assuming an EV/Sales of 2.6x brings the PV to US$210 based on your conservative growth forecasts, which frankly are too low.
    Jul 15 11:14 AM | 1 Like Like |Link to Comment
  • Microsoft - Growing Strength In The Enterprise Is Where The Real Value Is [View article]
    Excellent insight into a little understood side of Microsoft. Can you flesh out a little more the potential upside from Azure?
    Apr 9 08:56 AM | 1 Like Like |Link to Comment
  • What If Google Glass Flops? [View article]
    Thanks for your thoughts Mark. Here's a fun and interesting video which shows the distant future potential of the concept behind Google Glass.
    Mar 13 11:03 AM | Likes Like |Link to Comment