How many times have we heard that LTR or any stock for that matter is undervalued based on FA? That's based on the investors idea that a fair price for a stock must be more than they paid for it or what the current SP is. It's one of the most common, and dangerous, biases that exists.
How many times have we heard that the market has to catch up FA and do a re-rate on XYZ stock. Then again it is said that the Market is forward looking. How do fundamentalist reconcile this, because one of the biggest misconceptions of investors is that prices move based upon fundamental reasons, when in fact prices move based upon the perception of fundamental reasons? Take the example of a positive announcement upgrading the fundamentals of a stock and the SP is undergoing a correction!
Despite that if SP is falling, how many times have we heard that the market is irrational. However it is not clear by whose standards we are to judge the behavior rational or irrational, who is going to be the judge of irrational market behavior? Irrationality, historically speaking, is an outcome of the ancient Greek separation of rationality from emotion and sensuality as the sources of "false" assumptions and statements. There again is the warning to not let one's emotion cloud one's judgement and I often said to face reality as it is, not as it was or as you wish it to be.
Take it as you will, but charts show up to date SP changes every minute of every day, week or month and with that what someone is willing to pay for a stock or accept as a sales price. So far I haven't seen anything as accurate as that in any fundamental analysis attempt no matter what subjective assumptions are taken into account or how many people take them as gospel.
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