Ann Demeulemeester to Exit House

[Shucks]

hey dude heard of the los angeles dodgers? the team was knee deep in dept as in losing money on a year to year basis and was recently sold to Magic Johnson and a large group of investors for 1.4 Billion dollars(rumored as high as 2 billion), that included cable rights and dodger stadium and the parking lot etc.. but this is a team/company that lost money probably for the last 10 years w/ the owner taking money from the dodgers to live his awesome life as well and as poorly run'd as that team was it still fetched what is an all time record for a baseball team maybe an american franchise, u know why? it has nothing to do w/ current earnings and has everything to do w/ potential earnings, so 5 times any company's earnings is really not even something to blink about, when FB went public did it make 5 times it's earnings? no i think was closer to 32 times it's earnings, when Krispy Creme went public did it earn 5 times it's earnings... not really more like 70 times it's earnings.

Not sure if u follow the this thing called the stock market but it's all perception and recognition and has very little to do w/ earnings. as a dude that worked in that field for a year I saw that multiple times, even when things came in over the estimate they fell and when some companys came in well under... (amazon for example) the stock rose dramatically. There's this thing called stupidity and people w/ money are pretty much stuck w/ it as well...

hey dude, how about reading my posts again. my point was that ANY rule of thumb is fucking useless, but that five times TURNOVER is even MORE pointless than earnings.

[Anomie]

no, but valuation of tech 'bubble' firms isn't done on turnover either, but on expected future earnings and on goodwill / brand equity.

I respectfully disagree businesses like Ann D are valued with revenue multiples all of the time. The reason is that current earnings do not reflect the value that a conglomerate would get if they applied their economies of scale and "exploit" the brand to its fullest.

[mrbeuys]

But turnover is meaningless without taking the cost of running the business into consideration. Sure, you can apply economies of scale and move to cheaper production etc but I agree with Shucks that no one in their right mind would just look at the P&L and apply something as crude as a 5 times multiplier of turnover. I have been there and I can tell you it was a LOT more complicated than that.

[PLundgren]

This is just one thing... Really really sad.

[Shucks]

But turnover is meaningless without taking the cost of running the business into consideration. Sure, you can apply economies of scale and move to cheaper production etc but I agree with Shucks that no one in their right mind would just look at the P&L and apply something as crude as a 5 times multiplier of turnover. I have been there and I can tell you it was a LOT more complicated than that.

thanks. i wish ppl would actually read before they comment.

[upsilonkng]

hey dude, how about reading my posts again. my point was that ANY rule of thumb is fucking useless, but that five times TURNOVER is even MORE pointless than earnings.

re-read, my bad. we're agreeing not disagreeing, shit's crazy , it'll all break.

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