At around $20 the company is worth about what it was 6-12 months ago. If it goes above that level, it is clearly overbought and especially so since the business will not be “back to normal” for quite some time to come. Certainly not this year and probably not next year either. What does Turner reckon about this timing btw?!
Some will no doubt get caught in the momentum and will be left with their heads spinning when the music stops, especially considering some of the posts I’ve seen here where some people look at a basic sp chart and still think there’s 60% recovery to go! The mind boggles!
Sure, hype and momentum can do strange things to the sp, and we will probably see some more here, but imo “back to normal” in 2-3 years should see $20-$25 justified, but anything over say $15 this year is already too far forward looking and I doubt the business’ financials in the next 12 months will come close to supporting anything higher than that ($3b MC).
Hope I’m wrong and it goes to the moon though.
We’ll see!
Gltah
FLT Price at posting:
$16.85 Sentiment: None Disclosure: Not Held
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