This post is inspired by Jim Cramer’s excellent (Mad Money) adventure on the valuation of AMAZON.COM(AMZN). We all owe thanks to Jim for all his insight and performance on the show. However we should also know that no one is his right mind will give the viewing audience the keys to the kingdom, regardless of the price. The P/E ratios are all bunk. The game is all about the balance sheet and how to value a stock based on that little piece of paper.
Amazon is hard to put a number on , but just as a curiosity I used a valuation approach that work very well for me in the past. It was an approach to value stocks that had no earnings. It had me buying Bio Reference Laboratories (BRLI) for$1 and $2 in the early 2000″s. Another stock too, Evici College Careers at $1.00. Both went to the moon. The premise is similar, as far as valuation goes. You must remember, it was a bear market back then ,this is a stealth bull market. Also, every time AMAZON posts results, the numbers change. Anyway, thanks to Jim Cramer for all he does. My TARGET for AMAZON this balance sheet is $217.40. As a declaration, I do not own the stock and feel there are other opportunities elsewhere.
My apologies, this post was scheduled for last Sunday. Could there be light at the end of the tunnel? The S&P 500 hit the 50 day moving average in upside volume. This happened last Friday. The month is not over yet. The last time this occurred was August of 2007, before the market started to tank. I will try to get back in detail on this note. Don’t listen to any pundits trying to explain this rally. It’s all volume. And it’s volume a go-go.
The San Felipe, a premier Derby stepping stone has many believing that this is a one horse race. I tend to disagree. Pioneerof The Nile looks topped out. An interesting horse here is New Bay. If he goes, he is the one for me. Good Luck to all.
The phrase you’re likely to hear most from our politicians during these troubled economic times will be ” There will be a chicken in every pot”. Obviously referring to future prosperity if they are elected. The quote was introduced in America during the depression by Herbert Hoover when on the campaign trail. It is reported that it originated in France under the rule of Henry IV. The French king stated that every peasant will have a chicken in their pot on Sunday. This makes me wonder if these politicians still view the people who pay their salaries as peasants? Just a thought.
Don’t cry for me Argentina. I’m on my second case of this little beauty. It’s little wonder that the only wine witnessed being bought at the local LCBO was this one and it was by the case. At 7 bucks it’s a steal.This Shiraz Malbec combo sits on the tongue almost as a hearty Aussie one would. A consumer favorite no doubt in these times of recession. It finishes well, by that I mean, the end of the bottle is as good as the start . Can’t say that about a lot of wines. Enjoy!
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