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  • Why Investors Should Never Focus Exclusively On Share Price [View article]
    Great point and well argued.
    Aug 21, 2012. 01:25 PM | 2 Likes Like |Link to Comment
  • The True Value Of Execution: Why These Social Media Stocks Are Likely Overvalued - Part 2 [View article]
    Thank you for your reply NR. Great execution can be measured in multiple ways asides from early-stage profitability. I also prefer companies that have a durable competitive advantage (economic moat); but I also recognize that few companies truly do (especially in tech).

    This is why I want to see reasonable and sustainable growth strategies employed at the very least. This means strategies that are not exclusively reliant upon excessively high levels of spending. Hence why the article focussed on R&D/SGA execution.

    In regards to the early years of iPod/iTunes. While Apple may not have been as profitable, Apple was certainly executing in the areas of R&D/SGA performance back in 2001-2004:

    In terms of R&D/net sales execution:
    2001: 8%
    2002: 7.7%
    2003: 7.5%
    2004: 5.9%

    In terms of SGA/net sales execution:
    2001: 21%
    2002: 19.3%
    2003: 19.5%
    2004: 17.2%
    Aug 14, 2012. 01:30 PM | Likes Like |Link to Comment
  • Lessons To Learn From China's Failed Stimulus Program [View article]
    'Instead, I'll bet on good companies and commodities that can survive the decisions of the political class.'

    This comment really hit home. Solid article.
    Aug 14, 2012. 09:49 AM | 1 Like Like |Link to Comment
  • The True Value Of An Idea: Why These Social Media Stocks Are Likely Overvalued [View article]
    Additionally, from Pandora's own homepage describing the 'new' Pandora:

    Discover new music (and comedy) stations to try. Follow friends and others on Pandora, see what they are listening to, what they are discussing and liking on Pandora. Share your discoveries, talk about old favorites, thumbs-up or comment on artists, songs and station
    Aug 10, 2012. 11:41 AM | Likes Like |Link to Comment
  • The True Value Of An Idea: Why These Social Media Stocks Are Likely Overvalued [View article]
    Thanks for the reply. I agree that these stocks do depend on their long term potential. Even in the long term, I don't think we will see the level of execution needed in terms of earnings to justify the current valuations on these stocks.

    Currently the forward P/E of the S&P 500 is 13.46. I don't think these stocks are going to ever reach this level without a serious drop in price sometime in the future. Price drops will come from a mix of a combination of unmet unrealistic growth expectations and from consequences of the highly competitive environment in which they operate.

    All these stocks are currently the dominant player in their respective fields. Will they maintain that position for the next 10 years? I don't know. If not, where will the earnings come from? Will these companies be able to accelerate growth based on new products or better monetizing existing products? I don't know. But it seems as though the very fastest growth days may be in the past. A yes for these questions would need brilliant execution on the behalf of management. With a frail moat to protect them. Possible, yes. But a gamble.

    I am sure some will win big playing a few of these companies. But just like the roulette table, in the long run the odds appear stacked against the investor.
    Aug 9, 2012. 06:31 PM | Likes Like |Link to Comment
  • The True Value Of An Idea: Why These Social Media Stocks Are Likely Overvalued [View article]
    Thanks for this insight, definitely something I will have to look out for in the future.
    Aug 9, 2012. 04:16 PM | Likes Like |Link to Comment
  • The Climate Is Right For RPX Corporation [View article]
    Then they are both currently priced more reasonably. Thanks for your comment. Win.TO was the symbol I was looking for.
    Jul 12, 2012. 08:30 AM | Likes Like |Link to Comment