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madskiw

madskiw
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  • Amazon.com: A Technical Look (11.22.12) [View instapost]
    I, personally, do not believe in technicals. It's like looking at tea leaves. PE values also work upto a certain point and they, like technicals, are backward-looking figures than forward-looking figures. This report falls short in many ways especially when it comes to justifying positive forward looking sentiment on AMZN.
    I would say the positives come from the Kindle device and amazon web service and the investors took the stock a little too far with the price at such huge P/E values.
    What's more important is that AMZN is NOT a dividend paying stock. With a non dividend paying stock, it's very hard to justify the stock's intrinsic value with CAPM. In a case like this, analysts say "trading on technicals", I call them gambling with tea leaves.
    You should study up on CFA before posting something like this.
    Nov 28, 2012. 02:48 AM | Likes Like |Link to Comment
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