Profit taking, page-66

Trying to value APT by traditional metrics is a mistake. If you used these traditional metrics say of 30 P/e you would never buy any tech company. These companies are on the expanding part of the industry s-curve hence we need to value based on potential and discount from there to reflect npv. With this in mind, at 6b and a global potential, apt has alot of room to grow.

With regards to when to sell. For me the short term share price is irrelevant. Value will always be reflected in the share price of the company is allowed to operate. Therefore the time to sell is when the company realises the achievements that you bought in for.

For me, that is us expansion starts to steady in that the total customer growth rates are not exponential = sell 1. Apt is cash positive with yoy growth around 20 percent is sell 2. I'll always leave 30 percent free carried just to see.

As for the short term share price. Given you follow you have an intrinsic understanding of where it should be. Hence id maintain a trading portfolio just to play the up and down. For example. We know apt risk is on the down side right now. Time to close that short term Position (which I did from 17 through to 20. Those positions were bought from 14 down to 11). You can't ever time it perfectly.

My 2c.

Great thread..