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Subject:  Re: How long do P/S last? Date:  12/7/2018  2:03 PM
Author:  dumaflotchie Number:  106367 of 114607

So I am arguing that it is irrational to think MDB can double in stock price in next 12 months, if their growth rate stays consistent at 50%, because their current P/S is already factoring that kind of growth in for next couple years.

In fact, many of these higher P/S stocks weren't that high a year ago BEFORE their big run this past year.....but now they MDB, etc.

So agree Dreamer....either these multiples have to compress or these stocks must be able to sustain a high P/S for a few years....and other than FB....very few have been able to do that.

If we assume the latter, one could see these stocks growing at the rate of revenue growth...assuming they could ALSO sustain the high P/S at the same time.

This is really a great discussion and on the FEV thread.....what holders of these stocks are saying is the equivalent of "buy low sell high doesn't apply.....we are buying high and wanting to sell high or even higher".
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