IRTC And GIS Stock: Perception And Pricing
Todd Sullivan | Mar 28, 2018 12:49AM ET
Knowing that prices are reflections of market expectations of the future, do you trust the market perception of anticipated underlying financial performance of IRTC over GIS?
iRhythm Technologies Inc (NASDAQ:IRTC) is ~15 x Revenue which is a wild price to pay for anything without a business history (same for Tesla Inc (NASDAQ:TSLA)) and has a negative Cash Flow, negative Net Inc
General Mills Inc (NYSE:GIS) is ~1.6x Revenues, carries ~10 Price/Earnings(real Net Income), more than 4% Dividend and an extensive business history working through periods like the current one in which sales slowed. Also a large factor of slowing sales is US$ strength due to global political fears which is now reversing.
Momentum Investors are trusting the price-trend and favor IRTC.
Value Investors like myself who know how to value the businesses behind the price will favor GIS. I own GIS.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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