So I very rarely post on this forum, but one thing that I have...

So I very rarely post on this forum, but one thing that I have been pondering over the long weekend continues to trouble me…

So many banks, brokers and financial institutions are focused on a company’s proven track record. Ie there are numerous uneducated “experts”, who comment that PLS is trading at a PE ratio of 80 based on the last financial year, or that their EPS is ridiculous to justify the current market cap (again based off the past FY/12 months).

The same institutions then however take the report from GS as bible, and therefore have to “price in” the expected price declines within the current SP. So it seems as if these “experts” just pick and choose the bits that are relevant to their motives, as a justification for which way they want to drive the price.

I wonder what will happen when the quarterly results are officially released…will these “experts” then revise their price targets and motives to reflect the proven performance of rhe company, or will they ignore the solid hard financial results and instead say “oh yeah these results are ok I guess, but in 12 months time the price of spod will come off 80%, so we are instead going to place our valuation on the company based off this future price that has been made up by one of the GS interns….

The market isn’t fair, it never will be. Listen to the real experts and hold on for the ride, this will be a mere blip in 12 months time IMHO only..

Pap