Monday, 24 July 2017

An expert on Amazon says ...

Okay, okay. An opinion on Amazon. From an expert. Nice. 'For Christ's sake, Mikey! You ain't no expert on Amazon. You ain't no expert on anything. Except, of course, playing your Les Paul like Jeff Beck. Ha! But that's not going to help us here.' Voice, man ... you're an idiot, son, yeah? 'Oh yeah. And why's that?' Because I'm not claiming to be the expert on Amazon, am?! I've got the expert lined up. It's a PR email. 'Oh. So who is it, then?' Brent Wilsey. 'Never heard of him.' Bloody hell!

Brent M. Wilsey is a highly regarded registered investment advisor and a seasoned financial strategist with over 40 years of experience in the field. Wilsey currently owns and operates San Diego-based Wilsey Asset Management through which he offers day-to-day investment guidance to both individual investors and corporations.

You see? 'Yeah, okay. I suppose our Brent is on TV and Radio and all that, isn't he?' Ha!

Currently Wilsey's firm manages nearly $200 million in assets. His industry expertise and credibility has made him a sought after expert source, having served as a guest commentator on numerous top-tier national broadcast television and radio programs. He can also be seen regularly on The Big Biz Show and Sully's Biz Brew Show discussing company fundamentals and investment advice. Wilsey has also been called upon by top-tier print and online media, including Barron's, Business Week and Forbes.

You see, man? 'Yeah. It's certainly impressive, boss. What does he say about Amazon then?' Ah. This -

Our Brent says: "These types of moves in the stock market can be dangerous for many investors. When Amazon makes a statement about entering a new field, its stock price will generally appreciate and the field it attacks will witness substantial declines. There is not much financial backing or evidence that the statement will be accreditive overtime, but rather the excitement leads to irrational exuberance about how Amazon will conquer all industries that it enters. This excitement has bid up the stock price of Amazon to levels that demonstrate extremely high valuations. The company has a current P/E of 193 which is well above the lofty industry average of 56, Price/Sales are 3.45 which is again well above the industry average of 1.32, and Price/Cash Flow of 43.37 is more than double the industry average of 17.00. If I look out to December 2018 estimated GAAP EPS of $11.35 would result in a forward P/E of nearly 91. The 40-year average for this multiple is 16.5. the obsession over growth for this company often reminds me of the loft valuations that were witnessed during the tech boom in 2000. The result of the high valuations during the tech boom was a substantial decline in the growth stocks that everyone had become so fond of. This type of behaviour is what concerns me when it comes to the health of the stock market. On the other side, with investors selling fundamentally strong companies due to a press release a buying opportunity can often be presented. This can benefit some investors over the long term as long as they find the right companies that have strong balance sheets and earnings power moving forward."

You see? 'Yeah. Amazon is trying to take over the world, boss. Soon everyone will be working in one of its lovely warehouses.' Ha! Not me, Voice. I'm going to be a rock and roll star. 'We'll see.' Don't bring me down with negative vibes, man. 'Sorry.' It's Monday morning. There ain't even no summer to cheer us up. 'But it's the end of July.' That don't mean shit. Have you looked out of the window? 'Christ! I see what you mean.' Yeah. And it's those poor Aviva Investors bastards I feel sorry for. 'Ha! They'll be all right in the pub.' Maybe. I don't know, Voice. They were looking forward to the park.

...

Anything else? Politics? Brexit? I'm not even discussing that nonsense any more. If a bunch of clowns want to destroy the country, and if a bunch of squares want to write about it ... it's got NOTHING to do with me, you dig? I have my own private life, where I'm concerned about me and me only. And that's it!

Laters. 'No. 532?' Later!