“It’s been a week since David Einhorn told investors in his Greenlight Capital hedge fund that he was betting against a list of ‘cool kid’ stocks whose value could fall as much as 90% ‘if and when the market reapplies traditional valuations,'” Philip Elmer-DeWitt reports for Fortune.
“A reapplication of traditional valuations — starting with, say, price-to-earnings ratios — is something Apple investors have waited a long time to see. In last week’s bloodletting, big money flowed out of some high-flying tech stocks and into Apple,” P.E.D. reports. “But based on the 12-month trailing P/Es listed below, the market still has a ways to go.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]
Wouldn’t it be nice.
Sorry, but I hope this bites a few of these companies in the a$$.
It’s about time the market started thinking correctly and separated the market poseurs from the real achievers. We’ve only just begun. Good times ahead.
Exactly. What a curse it is to be insightful, then watch all the UN-insighful…
EPS 12….EPS 1200….EPS 12…EPS 1200…
Hmmm, which one should I buy? I wonder…
Ack! Should P/E, not EPS! Wish there was an edit button.
It’s like watching a massive flock of starlings up in the sky. They go THISSSSS way… They go THATTTT way…
Herd mentality.
And individually, I really like starlings! I have a family of them who live inside the house next door (not kidding, that’s how crap the house is). They are incredibly inventive making up sounds, as if they were mocking birds or cat birds. But get a bunch of them together and…
Yes, clever birds starlings – but how soon will they follow in the sad path of the once cheeky and ubiquitous sparrow?
Gadfly, I rated your comment at 5 stars, just because your post is a beautiful poem.
Wouldn’t that be flock mentality?
I know. But ‘herd mentality’ has that connotation I was looking for.