Exact(13)
"Bankers, above all American bankers, were greedy, and put their business on a not-so-solid base, with excessive valuations.
In turn, management gets trapped into trying to justify excessive valuations by focusing on short-term results.
Technology stocks in the US had fallen back on fears of slowing growth and excessive valuations, sending UK chip designer Arm down 47p to £10.80.
After 20 years of generating superlative investment returns by buying stocks that were undervalued and selling short those that carried excessive valuations, Mr. Robertson, 67, confirmed yesterday that he was shutting Tiger's operations.
He thinks that investors, burned by companies whose shares plunge a la Lucent, will start to exit sexy stocks with excessive valuations -- and rediscover undervalued shares of companies with venerable, if boring, businesses.
Arsène Wenger wants two central defenders for Arsenal but has met resistance, and in some cases excessive valuations, in his efforts to sign Gary Cahill, Phil Jagielka and Christopher Samba from Bolton, Everton and Blackburn Rovers, respectively.
Similar(47)
The key question in today's market, of course, is what constitutes excessive valuation.
Mr. Richardson, whose fund outperformed the S.& P. 500 for the one-, three- and five-year periods through the end of the first quarter, said indexing had another weakness besides excessive valuation: lack of diversification.
Duncan Drasdo, chief executive of Manchester United Supporters Trust, tells Reuters: "There are so many better uses for Manchester United's profits than sending the money to Florida or into interest or debt payments on the Glazer's debts … or indeed into excessive dividend payments resulting from an excessive valuation at I.P.O".
It sounds lame or unhip but, if the earnings aren't there, why grasp at straws?" Now, with the prices of almost all these former highfliers in the cellar and the overall stock market deep in bear market territory, investors are seeing how wrong they were to ignore excessive valuation levels and to buy stocks based on ephemera like "engaged shoppers" or so-called pro forma results.
Don't over-negotiate, as excessive valuation is painful to correct over time, and often can kill the company and cause the founders to lose everything.
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