What am I missing?
As open table takes a nosedive, I'm getting reminded by another stock trend that I was right about, but picked way too early.
Since the crash of 08 I've be early before, but never as early before about maybe 50 plus companies that seem to want haunt me since 08.
Believe me, I understand government influence. I understand propping up the economy. I know about the plunge protection team.
I know that the Bernank wants to throw enough money on the ground to make it seem like it's raining money and us Americans just have to show up to get rich.
So even taking all that into account, what am I missing? Why is Crox trading at 27 times earnings? Why is Pier 1 not in bankruptcy?
Why is Dollar Thrifty trading at about 8 times what it's worth?
I've stayed away from banks and home builders, I know that the government will prop them.
When a company like opentable has a market cap of 2.5 billion dollars though, that just slaps you in face before it calls you stupid. You are making online restaurant reservations! Open table could get every restaurant in the world and not be a $ 2.5 bil company. Even if they did, they have no moat! I can start a company tomorrow than can take online restaurant reservations without any overhead. What are people investing in?