just because there are might be other firms with worst metrics doesn't make VRX a
bad short.
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VRX - time to buy ?
- Thread starter syswizard
- Start date
just because there are might be other firms with worst metrics doesn't make VRX a
bad short.
can you supply a link for 30 billion in debt for uber.
to say 30 billion in debt doesn't matter is prima facie ridiculous. debt is maybe relatively cheap today. the debt has to be serviced and any rollover of the debt might require much higher interest payments.
where are the earnings and debt payments going to come from?
use of words like "debt-schmedt' means you have not done an in-depth analysis of the co.
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Uber isn't in debt. Equity != debt.
100% gain vs 100 -300% loss outcomes that you describe don't necessarily make VRX a bad short. After all, let's not forget that you need to apply probabilities to those outcomes.
yes but the consequences of being wrong are disastrous, which is not the case in other stocks in the sector
Why would you say that? In theory, any stock, in the same sector or otherwise, can double, triple or quadruple in price for whatever reason, no? Why is VRX special?
because if the bulls are right, its trading at 3x earnings. that is not the case in any stock without a massive rise in revenues
Right, so we go back to what I said earlier, don't we? Specifically, it's not just the outcomes that matter, but also their probabilities. Assuming 50:50, which is what you're implicitly doing, is pretty arbitrary.
The asymetry makes it necessary to be right a lot more often than a normal situation
1) stock once was over $200...albeit overvalued there....now at a fraction of that price
2) new management
3) famous hedge fund manager on the board of directors
4) still in a growth industry