I've recently invested in Knot stock. I do think they are an up and coming business. I'll be in it for the long haul. I wish I had bought when it was at $8.
Come on, seriously, look at its p/e. It reminds me of the dotcom bubble days. It can't be that good, can it?
You must look at it from a new product point of view. I think some of the bigger internet giants such as Yahoo and Google will take notice if it keeps at this pace. ANyone have any estimates if bought out by one of those companies??
Rumor has it that the Knot is spliting off some of their Nest features around Pregnancy, Fertility and Parenting into a new site that will rival babycenter.com and other similar sites. This would create competition in an ever growing space and probably significantly increase their user base.
Knot has been trading lately in a tight range above 30. If, on high volume, it breaks higher, buy more. If, on high volume, lower, sell it till it after its correction. But don't buy on PE only. The best stocks, even with high PE's, still go lots higher, because people want them.
But don't buy on PE only. The best stocks, even with high PE's, still go lots higher, because people want them.But most of them come crashing down eventually because they can't meet expectations. If you get out beforehand, great but it is too much risk for me. There will be a lot of people licking wounds and feeling pretty sad today.
I agree, just look at Ctrip (CTRP) and Intuitive Surgical (ISRG). Both have high PEs but have performed well. Be forewarned though, that stocks with high PE's tend to get nailed at earnings times if they miss earnings or give not so bright forecasts. Which is why they shouldn't give forecasts!I don't think a PE of 29 is so bad for a stock like this. You could even call it cheap, considering it's growth rate. If you take Jim Cramer's advice, he's willing to pay up to 2X the growth rate for a company... after that, it's too expensive.So if ACME's earnings are expanding at 20% a year, then he is willing to pay a price that is at or below a PE of 40... He came up with this because that's what he believes hedge fund managers and mutual fund managers involved in the growth game are willing to pay. Use at your own risk! There are days I like Cramer, then there are days I think he's completely lost it. I personally hate it when he bad mouths www.Fool.com, that's just not acceptable.- Stone9
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |