Not exact matches
Over the years, I've emphasized what I call the Iron Law of Valuation: the every security is a claim on an expected
stream of future
cash flows, and given that expected
stream of future
cash flows, the
current price of the security moves opposite to the expected future return on that security.
Clearly, the
current valuation of NFLX implies a future
cash flow stream that even the strongest of business models would be challenged to achieve.
The main points here are that QE has encouraged the dramatic overvaluation of virtually every class of investments; that these elevated valuations don't represent «wealth» (which is embodied in the future
stream of deliverable
cash flows, not in the
current price); that extreme valuations promise dismal future outcomes for investors over a 10 - 12 year horizon; and that until a clear improvement in market internals conveys a resumption of speculative risk - seeking by investors, the
current combination of extreme valuations and increasing risk - aversion, coming off of an extended top formation after persistent «overvalued, overbought, overbullish» extremes, represents the singularly most negative return / risk classification we identify.
You get guys who go on CNBC and talk about the stock market as if it is simply a thermometer of
current economic conditions (rather than a discounted
stream of very long - term
cash flows).
Furthermore, even if book sales were to decline, it is our belief that the discounted value of the future
stream of
cash flows that BKS could expect to generate, otherwise known as its intrinsic value, would far exceed the
current enterprise value of the Company.
5) Grow these multiple revenue
streams to the point that they generate enough consistent and reliable
cash flow to replace your
current income.
I've included a very over-the-top projection of
cash flows from
current royalty
streams which you can view here (PDLI proj).
Analyze available information via multiple internal and external tools to identify the issue and bring resolution in order to improve
current cash flow and revenue
stream initiatives