There is one other thing I forgot to mention.
An auction market is about buying and selling. Something that is auctioned depends on the theory of supply and demand. P/E's, valuations, and other such metrics are only data to give reasons to the people in the auction to buy/sell.
In the auction market for the common stock of Amazon, we have to look at the big picture.
There is two men that control nearly 50% of the common stock, that is CEO Jeff and Legg Mason Bill. The rest is controlled by other insiders and various funds. There are very few shares on the open market. In fact, the only way shares have come on the open market was through insider sales and they have been snapped up by Bill and the rest of the fund managers.
The financial rags and blogs have called into question the valuation of Amazon. However, these publications might as well be singing to a brick wall.
The fate of the common stock rests in the hands of less then 15 men. Bill and Jeff being the two most controlling members. Bill isnt interested in selling and the SEC filings show that he keeps acquiring the stock.
Bill only sells his losers and lets the winners run. In fact, as a stock goes up, he acquires more.
So what is the logical point in which these 15 or so men will sell their shares? If I were them, I would only sell when the price approaches its all time high....
If you wanted to buy the common stock then I would think that there is less then 10 million shares available to the general public. Maybe even less then 5 million....
In reality, the financial rags telling you to short keep buoying the stock ever higher. Buying to cover is a virtual nightmare with such a short float.
An auction market is about buying and selling. Something that is auctioned depends on the theory of supply and demand. P/E's, valuations, and other such metrics are only data to give reasons to the people in the auction to buy/sell.
In the auction market for the common stock of Amazon, we have to look at the big picture.
There is two men that control nearly 50% of the common stock, that is CEO Jeff and Legg Mason Bill. The rest is controlled by other insiders and various funds. There are very few shares on the open market. In fact, the only way shares have come on the open market was through insider sales and they have been snapped up by Bill and the rest of the fund managers.
The financial rags and blogs have called into question the valuation of Amazon. However, these publications might as well be singing to a brick wall.
The fate of the common stock rests in the hands of less then 15 men. Bill and Jeff being the two most controlling members. Bill isnt interested in selling and the SEC filings show that he keeps acquiring the stock.
Bill only sells his losers and lets the winners run. In fact, as a stock goes up, he acquires more.
So what is the logical point in which these 15 or so men will sell their shares? If I were them, I would only sell when the price approaches its all time high....
If you wanted to buy the common stock then I would think that there is less then 10 million shares available to the general public. Maybe even less then 5 million....
In reality, the financial rags telling you to short keep buoying the stock ever higher. Buying to cover is a virtual nightmare with such a short float.
