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URL:  https://boards.fool.com/i-don39t-know-i-am-looking-at-my-tracking-port-34079107.aspx

Subject:  Re: How long do P/S last? Date:  12/7/2018  3:17 PM
Author:  XMFBreakerTinker Number:  106374 of 111609

I don't know. I am looking at my tracking port today and stocks are massively falling across the board and there appears to be no correspondence between price to sales and extent of the decline. In fact AYX is only down 2.64% while PSTG is down 6.44%.

Here is a year to date chart, certainly just a few random choices, but to a stock those with higher price to sales have outperformed those with much lower price to sales:

https://finance.yahoo.com/chart/MDB#eyJpbnRlcnZhbCI6ImRheSIs...

This said, NTNX will probably outperform from its bottom in the crash; NVDA will probably start to outperform again {but only after a lot of patience}, will PSTG or ANET outperform again despite their much lower price to sales? NTNX and NVDA because their fundamentals will end up re-asserting itself (Nutanix is already doing that, NVDA will have to actually get the fundamentals to resurface).

As such, the one correlation that appears to be the case, higher price to sale stocks with the fundamentals to support it outperform lower price to sale stocks, including those with either fundamentals or fundamentals that will probably reassert itself in the future. The one exception is a true FUD event that the market clearly got wrong (not just we wish it got wrong).

Btw as thought, Cloudera has pulled a PSTG.

Tinker
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