Hello friends! Hope everyone had a nice, rainy weekend. Looks like we finally had a positive week in the market. And while I’ve learned to never get too excited on good news these days as it’s usually fleeting fast, I will take a moment to relish in this one positive article. Ahhh.
Amazon has been getting a lot of attention lately for being this amazing bargain. It’s critics say its overvalued. I say who the heck owns a Kindle? While Amazon hasn’t exactly released figures on the sale of the Kindle, every analyst and journalist likes to point to the Kindle’s success as a piece of the Amazon success puzzle. Yet, I have never seen one in real life. I’ve never even heard of people talk about them in real life. I doubt half my friends know what they are and would most likely laugh when I told them what and how expensive it is. But I digress. I would be cautious of Amazon. AMZN is expected to earn $1.48 in 2009 and $1.90 in 2010, a growth rate 28% . That number seems highly optimistic in a recession, especially when old super stars like GOOG, AAPL and RIMM are expected to see 15% earnings growth in 2010. It’s no doubt Amazon looks attractive right now. They closed up today and sentiment was bearish last week but appears to be becoming more bullish. Im curious to see how this lasts as more and more bloggers seems to be bashing AMZN’s valuation. The highest rated predictor on Amazon has actually predicted UP while the other less accurate predictors have predicted down, interestingly. You can find this under the Accuracy>Star Performers tab.
All those people loosing their jobs, are they really signing onto Amazon to spend their diminishing paychecks on CD’s, movies, and the Kindle 2?
What is that Mr. Buffett? I can’t quite hear you. Oh ya “Be fearful when others are greedy and greedy when others are fearful.”
Stumble It!
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