Are Apple And Its Competitors Undervalued? [View article]
You clearly did not understand the article. Go back and reread it. The author defines his own measure of "undervalued", and clearly, according to his own definition, these stocks meet that definition.
"If the annual average stock price increase is significantly lower than the average annual fundamental parameter growth, the stock can be considered undervalued in this respect." The key words are "in this respect."
He's not looking at stock price as it was in 2002. He's looking at the price growth from 2002 - 2011 and comparing that growth to the amount of growth in his 3 parameters. For example, the average annual growth in share price for aapl from 2002 - 2011 was 63.8% per year. The earnings per share growth in the same period was 108.7% per year. Clearly earnings per share have grown much faster than the stock price, which implies that the stock price has some catching up to do. This also implies that p/e has fallen over these years and we see that is indeed the case.
If you want to attack the article, I'd say the weak point is in how the author tries to combine the 3 parameters into a single measure. I'm guessing that he's averaging them; and as a "back-of-the-envelope" analysis, it's fine, but there really is no reasonable basis for doing this. Another point you might attack is that these parameters are imperfect measures of enterprise value. But realistically, if you want a more complete analysis, you need a much, MUCH longer article.
Why Yelp Is Not A Good Investment: 3 Reasons To Sell The Stock Now [View article]
Disclosure: I have no positions on yelp.
Worst article ever. By the way, your graphic is upside down. The 24M should be in the bottom circle. The middle circle zooms in to a portion of that, which is the 529K figure, then the top circle zooms into a portion of the 529K and that should be the 19K figure.
I'd avoid yelp as well, but my reason is that yelp's management is incompetent. Otherwise, they have tremendous position due to the size of their userbase. The poor business model argument is weak since business models for social media companies can turn on a dime. If yelp had good leadership in place who knew what they were doing, it'd be a good company.
Are Apple And Its Competitors Undervalued? [View article]
"If the annual average stock price increase is significantly lower than the average annual fundamental parameter growth, the stock can be considered undervalued in this respect." The key words are "in this respect."
He's not looking at stock price as it was in 2002. He's looking at the price growth from 2002 - 2011 and comparing that growth to the amount of growth in his 3 parameters. For example, the average annual growth in share price for aapl from 2002 - 2011 was 63.8% per year. The earnings per share growth in the same period was 108.7% per year. Clearly earnings per share have grown much faster than the stock price, which implies that the stock price has some catching up to do. This also implies that p/e has fallen over these years and we see that is indeed the case.
If you want to attack the article, I'd say the weak point is in how the author tries to combine the 3 parameters into a single measure. I'm guessing that he's averaging them; and as a "back-of-the-envelope" analysis, it's fine, but there really is no reasonable basis for doing this. Another point you might attack is that these parameters are imperfect measures of enterprise value. But realistically, if you want a more complete analysis, you need a much, MUCH longer article.
Why Yelp Is Not A Good Investment: 3 Reasons To Sell The Stock Now [View article]
Worst article ever. By the way, your graphic is upside down. The 24M should be in the bottom circle. The middle circle zooms in to a portion of that, which is the 529K figure, then the top circle zooms into a portion of the 529K and that should be the 19K figure.
I'd avoid yelp as well, but my reason is that yelp's management is incompetent. Otherwise, they have tremendous position due to the size of their userbase. The poor business model argument is weak since business models for social media companies can turn on a dime. If yelp had good leadership in place who knew what they were doing, it'd be a good company.