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Subject:  Re: Let's Refine the P/S Discussion Date:  12/9/2018  7:41 AM
Author:  dumaflotchie Number:  106462 of 115961

While everyone is checking all those stocks that have sustained a P/S of 20 or greater for 3 or more years, please allow me to summarize what we have so far:

1) Only 3 stocks have been identified that have sustained 3 years of high P/S (FB, BIDU and WDAY)

2) One stock has been identified with a single year high P/S (YELP). CSCO was tossed out since it was the 2000 bubble.

3)The subsequent stock returns in the 2-3 years after these high valuations were attained, were more often disappointments.

4)Sustained high P/S seems to be a VERY rare event, so we should be VERY CAREFUL trying to explain it or rationalize why this time is different.

5) There are presently 5 high P/S stocks that many investors here are invested in (MDB, AYX, ZS, ESTC, OKTA). The choice of 20 is a bit arbitrary and other stocks are close to that level such as SHOP, TWLO and SQ when using "adjusted revenue" number).

The above summary may be modified as this thread continues.....please let me know all the stocks you have with high P/S over 3 or more years.

Once we have assembled the complete list, I think Tinker has brought up a very good point regarding whether the "risk" of owning these stocks is any greater than a lesser P/S stock under market duress circumstances. That is, if we hit a recession in 2019, does MDB fall any more than a NTNX?

I hope you are finding this thread of "value" in your own decisions about whether to own or buy these higher P/S stocks.

We are not done yet with this analysis so stay tuned and throw in your 2 cents. Thanks to all who have contributed this far!
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