Overvalued large cap stocks

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Re: Overvalued large cap stocks

The next potentially overvalued stock is facebook. Sat may 12 wsj had an article on facebk ipo may 18. Could value it at 76-96 billion vdollars. Most people making money will be founders vacs and well heeled folks who got offered shares at low prices. Linkedin after ipo doubled on day one lost 33 pct and trades recently 19% above first day close.

Article reminds us insiders have to hold stock for 6 monyhs. So waiting at least 6 months would allow lower prices as insiders sell.

I personally am clueless abut how to make money in ipo. One thing is logical with such a high mkt cap Max upside if it attains apple valuation is 6x.

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I meant if it attains apple market cap. Thanks to Ninjas for pointing this out.

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Wow that was old news. Opened and closed at 110 billion mkt cap

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So as expected retail investors got the shaft on this

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Stock down 25% from ipo lower end price of 38$

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Exxon probably is about 10% overvalued. They paid a lot for a nat gas company few yrs ago (xto) when nat gas price was much much higher. They spend lot of cash buying back stock to "increase shareholder value". While short term stock gets a lift long term buying back ovrrpriced stock destroys shareholder value.

Oil price has come down from $110/barrel to about 80. But stockbhas barely moved down. If oil prices trend down due to global slowdown and increases shale oil production the stockbprice should eventually follow.

Of course Mr. Market knows best. This is just an opinion. Everyone do own homework. I never short stocks.

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That derivative is of the 'housing-loan' bubble, I thinks.

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Re: Overvalued large cap stocks

Aayiye kaptaan sahab - yahan kafi soona soona sa lag raha hai

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One stock that never seems to go down is costco. Probably 10% overvalued. Our crack staff will do research and post analysis next week. Thanks for your patience.

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Kudos to our staff for researching this.

Costco market cap$41b
P/e 31 based on 2011 earnings. Earnings expected to jump 25% aided by smaller interest payment due to significant debt retirement in 2011.

P/e based on estimated 2012 earnings 25. Still expensive.

Balance sheet rock solid. I don't see it beating the sno500 over next 1 3 and 5 years. Index at 1360. Cost at 95. We shall see.

Thanks again to our staff.

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Just wanted to clarify the last sentence is just for kicks - there is no staff. It appears this may have caused some confusion with GS management based on a comment I received in the cyclical stock thread. So just wanted to clarify. (IMO it is obvious to most that this was just light hearted banter. There was no attempt to mislead. Apologies esp to Yazdi our gentleman moderator for unintended confusion caused. Thanks!

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:hehe: I knew it was joke but oh well