Boiler Room: The Official Stock Market Discussion

[Ohene]

What should the EV to EBITDA look like for a healthy buying opportunity?

it depends on the industry but to be honest anything above maybe 25 is pretty ridiculous

for instance i just worked on a financial services deal and the comparable companies for a potential exit were 20-22x EV/EBITDA
towards the end of last year...a company's multiple in the healthcare space woulda been like 15x

 

[Ohene]

I mean you're talking about short term price action vs long term results. In the short term trying to predict this is like trying to guess which way a deer is gonna run after it notices your headlights coming at it. Long term good performing companies get rewarded.

Probably fell because Lucid is a disaster that can't make cars right or fill their pre-orders.

what do you consider the long term? to me after 1 year it starts being the long term. we are at that point right now.

and a lot of these growth plays that are down 50-80%...they wont just snap back...investors will be looking at a few years to bounce back to break even let alone build a return

interest rates going up wont help either. a lot of companies are using inflation to price gouge. when interest rates go up and the cost of capital does as well, so will valuations. that being said I agree with the long term horizon, but the longer you stay in growth the longer you risk foregoing gains in other asset classes and holding the bag.

 

[winb83]

What should the EV to EBITDA look like for a healthy buying opportunity?

Don't you go by sector and compare companies? Fidelity has a good tool for that.

 

[winb83]

what do you consider the long term? to me after 1 year it starts being the long term. we are at that point right now.

and a lot of these growth plays that are down 50-80%...they wont just snap back...investors will be looking at a few years to bounce back to break even let alone build a return

interest rates going up wont help either. a lot of companies are using inflation to price gouge. when interest rates go up and the cost of capital does as well, so will valuations. that being said I agree with the long term horizon, but the longer you stay in growth the longer you risk foregoing gains in other asset classes and holding the bag.

1 year isn't long term. For tax purposes maybe but long term is at least 3 years and I'd feel like maybe closer to 5 years.

 

[Ohene]

1 year isn't long term. For tax purposes maybe but long term is at least 3 years and I'd feel like maybe closer to 5 years.

technically speaking...in business/finance ...long term is 1 year or more.
can do your research if you dont believe me

 

[dora_da_destroyer]

technically speaking...in business/finance ...long term is 1 year or more.
can do your research if you dont believe me

not in stock investing tho, flips < 6 months, short term =< 1 yr, intermediate = 1-3 years, long term = 5+ years. when people are talking about long-term patterns in the stock market, they are looking at 5-10+ horizons. that's why people start adjusting their 401k/portfolio allocations in their 50's, you don't wanna keep gambling if you have 10 yrs or less before you might start wanting to draw money

 

[Ohene]

not in stock investing tho, flips < 6 months, short term =< 1 yr, intermediate = 1-3 years, long term = 5+ years. when people are talking about long-term patterns in the stock market, they are looking at 5-10+ horizons. that's why people start adjusting their 401k/portfolio allocations in their 50's, you don't wanna keep gambling if you have 10 yrs or less before you might start wanting to draw money

fair enough

 

[FreshFromATL]

I saw they were trying to sell folks on buying Rivian stock the other day, it fell today

Don't believe anything these folks say. Choose when to make a move yourself and be happy with it.

Most of these folks have an agenda when they announce what they are doing to the public.

This is rule number one

 

[El_Mero_Mero]

Might not mean much since everything is going crazy, but AXON has earnings today.

 

[El_Mero_Mero]

Anyone here own shares in an electric vehicle ETF?

 

[JetFueledThoughts]

+ rep.

A year from now people gonna be screaming they should have bought Tesla at these levels, it's like clockwork, lol.

We're clearly on the fast track to mass EV adoption. Soaring gas prices should be the flashing signal for everyone where this thing is heading.

Buying EV stocks because of rising gas prices is like assuming people will go buy a new house if the weather in their city is shytty for a month.


The average American sees rising gas prices and they either drive less, or drive the same and bytch about the price. Avg. consumer doesn’t have financial flexibility to go buy an EV because they’re paying an extra $8 per tank.

 

[winb83]

Buying EV stocks because of rising gas prices is like assuming people will go buy a new house if the weather in their city is shytty for a month.


The average American sees rising gas prices and they either drive less, or drive the same and bytch about the price. Avg. consumer doesn’t have financial flexibility to go buy an EV because they’re paying an extra $8 per tank.

For the average American a decent equipped EV cost so much more than a standard car it probably isn't worth the purchase. Also the electric grid isn't gonna support everyone driving EVs.

There's still challenges to be conquered before EVs go mass market.

 

[humminbird]

pretty good read
How Whitney Wolfe Herd's 'Faustian bargain' with a Russian mogul made her a billionaire but left early Bumble employees without any stock

 

[winb83]

Please tell me Lemonade isn't going to 0.

 

[Macallik86]

Anyone here own shares in an electric vehicle ETF?

I was looking at LIT for a while. Not very liquid though. Most of the ones I've seen are pretty loosely traded