who can understand this logic

From "The Australian"

"The sell-off was sparked by a massive downgrade from Citigroup analyst Sanjay Magotra, who slashed his target price on the stock from $6.08 to just 82c and reversed his trading recommendation from "buy" to "sell".

"The downgrade was the result of abandoning a valuation based on the present value of future cash flows and adopting another using the ratio of enterprise value to pre-tax earnings, which Mr Magotra said better reflected the current market focus on near-term earnings.

"In the current market environment, not many investors are willing to pay for growth three to six months out, let alone three to six years," Mr Magotra said.

Valuations for global ports and rail businesses had also fallen by 30 per cent in the past eight weeks, he said, with average earnings multiples consistent with an Asciano share price of 64c, a level at which the company's equity "would be worthless".

"But Asciano's assets were superior to those of its global peers, so it should be valued on more generous multiples that suggested a target price of 82c, he said.

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Did you follow that stunning logic, folks ?

So Sanjay dumps one valuation model ( value $6.05 ) and substitues another ( 82c ). And they have the nerve to call stock market analysis a "profession".

"The current market focuses on short-term earnings" pontificates Sanjay. But valuations for similar assets have fallen 30% in two months ! Based on short-term earning, then ?

Shows what morons those valuers are then.