posted by mark
on Tue, 02/20/2018 - 17:14
Article Link:
How irrational can the market be? Well, today COST is getting hammered down.
COST's sales grew almost 1% more than analysts predicted. And what....COST was beaten up. Are investors A) drinking, B)confused, C)disillusioned or D) something else? I don't know, but I do think it is indicative of irrationality.
One analyst left his rating of the stock as Neutral citing valuation. The trailing PE is 27. I have owned COST for a number of years and the trailing PE has ALWAYs been in the upper 20's. What has really changed? Oh yeah...the Amazon scare!
This is why the market is not truly efficient, but it is indicative why value investing works. Sorry Dr. Eugene Fama!
