Valtrend - Butler Business Valuation

Archive for June, 2011

LinkedIn: I will LinkOut of the Investment

Saturday, June 25th, 2011

I love LinkedIn – the platform.¬† I am on it almost daily.¬† I use it to update my activities, connect with friends/acquaintances¬†and ‘”converse” on business valuation discussion boards.¬† However, I do not pay a thing.¬† So far, I only use its free service.¬† I may decide to pony up for the premium service down the road, but not now.

I do not like LinkedIn Рthe stock.  According to Yahoo!Finance, it is currently trading at a P/E of more than 1,000.  Yes, you read that correctly.  (I guess the good news is that it is not a negative P/E).  The company has already stated that it expects its revenue growth to decline.  Can you say bubble?

For comparison purposes, Google is currently trading at a P/E of 18.¬† While¬†I could be wrong, I fail to see how LinkedIn is going to grow into this lofty valuation…unless they start charging for the current free service.¬† I hope I haven’t opened my big mouth…

How Predictable are “Black” Swans?

Tuesday, June 14th, 2011

I am valuing a manufacturing company located in Joplin, Missouri.¬† My date of value is April 30, 2011.¬† The EF-5 tornado hit on (more…)

Change is Hard in any Industry

Wednesday, June 8th, 2011

Harvard sleep expert Dr. Charles Czeisler has spent approximately $3 million over many years showing (repeatedly) that doctors who do not get enough sleep make mistakes on the job.¬† You might ask, we need a study for this?¬† (more…)