Sam Stewart

GM: Delaying the Inevitable

@Homer II
Sorry, when I submitted the story there was a link to this story on Clusterstock: www.clusterstock.com/2...-

@Casey00001
The original title of the post was General Motors (GM) Runway: 350 Days. The point was that based on GM's performance in the last quarter they will struggle to survive another year. This back of the envelope calculation and the illustration of revenue, operating and share price performance was to highlight the poor performance of the company for an extended period of time. Based on the historic performance of the company it is difficult (in my opinion) to see GM turning things around irrespective of any restructuring or assistance.

Outlining GM's problems, actions and resolutions is not a trivial exercise and could easily be extended to a thesis. That was not the purpose of the post. I am sorry you didn't get anything out of the post and despite your suggestion I will not be putting my "pen" down.

Amazon Appears Reasonably Priced

Hi hugoh,
You are correct that the valuation is highly dependent on the assumptions made. This is the subjective nature of valuation in general. Our valuation highlight's the aggressive growth forecasts and provides sensitivity analysis to illustrate the impact of alternative assumptions.
Thanks for the feedback.
Valuecruncher

What's Driving Amazon's Stock Price?

From a Business Week article in November 2006

By all accounts, Amazon's new businesses bring in a minuscule amount of revenue. Although its direct cost of providing them appears relatively low because the hardware and software are in place, Stifel Nicolaus & Co. (SF) analyst Scott W. Devitt notes: "There's not going to be any economic return from any of these projects for the foreseeable future." Bezos himself admits as much. But with several years of heavy spending already, he's making this a priority for the long haul. "We think it's going to be a very meaningful business for us one day," he says. "What we've historically seen is that the seeds we plant can take anywhere from three, five, seven years."

www.businessweek.com/m...

What's Driving Amazon's Stock Price?

Valuecruncher recognises that Amazon has a number of growth options but we did not explicitly identify each one in our post. The web services component of Amazon is an interesting play and has potential but from a valuation perspective it is not significant enough today to justify the difference between our mid-point valuation and the current Amazon price.