Quotes about valuations (16 Quotes)



    Certainly there are bubble-like valuations of certain companies, but I don't think anyone out there believes that we're going to go back to doing business the way we used to do business.

    We're at a funny point in the cycle. The companies have reported that they're seeing some growth for the next quarter, but it's not robust growth, and the valuations on a historic basis are still pretty full. What's driving these stocks is sentiment -- people are afraid that if they miss them now they'll miss a big run-up.

    At a recent price of 23.60, Hutchison is selling at a hefty multiple of 16 times cash flow. Its price-to-earnings ratio is meaningless since it is currently posting a loss on the bottom line. For a more mature company, these valuations might be troubling, but since Hutchison is in such an extremely rapid growth phase, traditional valuation analysis is a difficult exercise. If you wait for the ratios to make sense, you'll miss the opportunity.

    The share price appreciation of each of these companies has significantly outperformed its respective industry groups, the SP 500 and Cendant, giving greater credence to our view that the aggregate valuations of the four proposed new companies will exceed that of Cendant today,


    We should point out that significant legal hurdles face the plaintiffs before they could prevail in these cases. Many of the agreements between the managed care companies and the physicians require arbitration and this could defuse the class actions ... However, we believe current HMO valuations assume these lawsuits will be dismissed out of hand. This is unlikely.

    But the whim we have of happiness is somewhat thus. By certain valuations, and averages, of our own striking, we come upon some sort of average terrestrial lot this we fancy belongs to us by nature, and of indefeasible rights.

    It's a positive environment for Canadian stocks right now. We seem to be going into an extended cycle of rising commodity prices. Takeovers are creating a lot of action, supporting valuations.

    We've gotten ahead of ourselves for a couple of months now, ... Right now people are on hold because some of these valuations do look a little high. I think people are just waiting for further confirmation that things are going to spill out into the earnings field.

    Those are the stocks that have worked this year. There's a lot of argument right now in the marketplace about valuations the top 50 stocks in the SP are way overvalued. You have to stick with the horses that have gotten you to where you are on a year-to-date basis, and I believe those are the stocks that will carry us after the correction that we're in the process of having right now through the end of the year.




    The tech sector is where the money seems to want to flow. You can just look at last week's action, when all the averages were up, the money flows into technology, primarily in telecommunications. And even though the valuations have been high all of these quarters and still are, I guess if you want to do well in the market you've got to have some of your assets in technology, definitely.


    Add in the fact that these five negative events started when large-cap growth was at historical highs put that together with the valuations, and you can start to explain why it's done so poorly. Multiples have compressed, growth is hard to come by, and people have been averse to risk. When will large cap growth start to work I think the answer is when we stop having a major negative event every year.



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