Tech,
Thats the problem with Momentun Plays.
They work for a while,until they Don't.
And when they Don't the Shareholders left holding the Stock are in Trouble.Loads of Trouble!!!
Regards
Ashish.
And Palo Alto just keeps getting more expensive. It closed up 6% today and hit a new post-IPO high of $66.91. When the momentum money starts chasing these stocks, there seems to be no concern about valuation. The market cap is up to $4.4 billion.
Street,
That's probably right.
But what is more important is the price you pay for a Stock.
That's what makes the Difference between an Ok/poor investment and A Great Investment!
Our Debate here evolves mainly on the issue whether or not the Stock is over-valued here and will it provide reliable Returns(through Capital Gains) from here.
Most of us here seem to think that won't be the case.
Regards
Ashish.
Telecom,
That's right.
For example's sake look no further than so-called Growth Stocks like Netflix,Amazon,Starbucks,Green Coffee,Facebook or Chipostle.
Once the market/momentum Pushers no longer fancies those stocks ;they just crash as if they were pushed up on nothing more than Vapour!!!
This is my major worry with Palo Alto as well.
I would rather see them establish a long-term History of paying Regular and Reliable Dividends and then only invest in them.
I want Boring Companies that pay regular,Growing and Reliable Dividends like Cisco,Microsoft and Intel today.
Palo Alto seems too risky right now
Regards
Ashish.
It seems to me that our national and corporate security vulnerabilities are so deep and so vast that there's room for both these players in the market, especially since they seem to be active in different sectors.
Is that simplistic of me?
@tokyogai,
I think Ashish hit it on the head, we have to figure out what kind of growth is figured into the current price to know if its a deal.
Ashish,
you are correct. if you are looking to invest you have to figure out how big the pice of pie they have factored in for themself. if its on the small side then they will more than likely outgrow it, but if they figure they are going to control 50% of the market in 2 years there could be an issue.
Re: Both Interesting plays
tokyogai
7/31/2012 9:20:58 PM
there are many players, but few who do it well and in a cost effective way.
Re: Both Interesting plays
back2basicz
7/31/2012 8:50:23 PM
Tokyo,
What surprised me more is that there are not many more competitors in such a fast growing In-demand field.
Why do you think that is the case?
Is'nt Checkpoint and Dell Sonicwall also competitors for these guys?
What about Big Blue?
Ashish.
Telecom,
What is important to know is this-How much of that Growth has already been priced into the current stock price?
That is very important to figure out today.
Ashish.
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