MJJJJ
02-19

$Palantir Technologies Inc.(PLTR)$  $Tesla Motors(TSLA)$  $NVIDIA(NVDA)$ $KUAISHOU-W(01024)$  $TENCENT(00700)$  

PEG which is PE/earnings growth is a more accurate relative measure as compared to just PE ratio. If  pltr has a PE of 614. It means it would take you 614 years to break even if earnings remain at current level. This is why we should take a look at PEG which take into account the growth rate of the earnings.

A PEG of 1 means it is fairly value. 

A PEG below 1 means it is undervalued

A PEG beyond 1 means it is overvalued.

With that in mind none of the MAG 7 is a buy now except for NVDA. Look at tesla and palantir... extremely overvalued and unattractive. Even with Pltr extreme earnings growth of near 70%. It would still take you over 12 years to break even. Dun forget earnings growth do not maintain at such extreme level of 70% constantly. Mature companies such as MAG 7 would have its growth at low to mid teens level. 

When it comes to investment, one need to buy at or below intrinsic value of a company with margin of safety. 

This goes to all the pltr bull as well as the tesla bull. Buying a stock because it is going up or because ceo promised a fairytale story is not investing. It is speculation. 

Currently we are at very expensive US market. Might be wise to look in international market like China. Tencent, Alibaba, Baidu and ....Kuaishou seems vry attractive. esp kuaishou. Just looked at the balance sheet and it looks vry good! Will explore more before i make a decision.

Modified in.02-19
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Comments

  • MJJJJ
    02-19
    MJJJJ
    might hurt some ppl but fact is fact. Get over your emotions! This is investing not voting…
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