This video is actually a very interesting discussion and provides a great summary of the WSB and GME shenanigans.
Also, of particular note imo, is the discussion towards the end about the market effectively no longer having anything to with the investment and capitalisation of businesses, but rather it being a plaything for chasing pips in both direction based on nothing to do with the underlying company attributes. Hence share prices can and do detach wildly from any reasonable assessment of company value, and defy those “experts” who keep shouting “overvalued” or whatever.
Interesting commentary on Tesla, whereby the story/dream was so great that investors piled in, in support of the dream, in turn allowing capital raising at prices “detached” from reality, and basically a self-fulfilling prophecy of success to play out... whilst the “experts” shorted it and lost billions.
In other words, like facthunter likes to remind us, the stock is a 3-letter ticker that is a plaything for the BEOT and they will push and pull it wherever it suits them, and retail are basically left to suck on the dregs wherever they can. They’ll push P/E’s and other “metrics” when they want to steer retail into their traps, but trade contrary to their “advice” if it suits them. Dirty games!
Where does that leave us? Well, hopefully the company grows enough over the next few years that the “low end” of the sp is a couple of bags higher than where it is now, regardless of the games at play. But, in the BS roller coaster that inevitably will play out, there is potential imo for massive swings, way beyond what might seem “reasonable” to anyone actually analysing the business.
There may well be a rule of thumb that the P/E “should” be 10-15 of whatever, but look at the many examples of companies trading at 30/40/50/100 etc.
Wild ride ahead imo when the gangsters decide it’s time to really push and pump, as they inevitably will.
Buckle up.
Interesting stuff.
Imo
DYOR
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