Starting Today, You Can Get In As Much Trouble As David Einhorn
Via Kevin Muir of “The Macro Tourist” fame
The other day, after reading one of my posts, my old boss sent me a note. It was a comment about the madness of investors chasing the hot momentum tech stocks.
“We were reminiscing about this stuff last night and I clearly remember that near the end [of the DotCom bubble], CNBC decided to have the CEO of International Paper on Power Lunch. They immediately received what they said was hate mail. After that, the NASDAQ fell from 5200 to 20
They put TSLA in there?! My god…. it’s like they’re asking it to fail.
TSLA, NFLX: negative free cashflow. All on the come that will never come.
There are two tech majors with superb fundamentals: AAPL and MSFT. The others (FB, NFLX, GOOG) have poor free cashflow in relation to their valuations.