Perception And Pricing – ValueWalk Premium

Perception And Pricing

“Davidson” submits:

See 2017 Hedge Fund Letters.

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?

IRTC is ~15 x Revenue which is a wild price to pay for anything without a business history (same for TSLA) and has a negative Cash Flow, negative Net Inc

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.

Irhythm Technologies vs General Mills - Perception And Pricing
Value Investors like myself who know how to value the businesses behind the price will favor GIS. I own GIS.

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