Its Over, page-19

  1. 2,651 Posts.
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    Of course I know that Mcap/Rev ratio or P/S is static snapshot of current and not forward looking but if the ratio is large it signifies that a lot of expectations have been built into the price and management better deliver. The market darlings on the Table tend to have higher MC/Rev as you can see BUD, YOJ, LVH LVT and their quarterly sales are virtually immaterial so the valuation has run substantially ahead of itself. These are the ones I expect to fall hard when numbers do not materialise and more CR - potential can only go so far and IMO you can sell a potential story up to circa $100m after that, people want to see more tangible results. The problem comes when managemnt of some of these companies make promising announcements to spruik their sp but eventually fail to deliver to expectations. Unfortunately looks like you own one of them.
 
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