Friday, March 04, 2011

And Another Thing......

In today's earlier post, I described some of the blather which comprised David Faber's noontime half hour on CNBC this past Wednesday. As I listened to the program again today, while multi-tasking, an on-air conversation reminded me of one more verbal blunder on Wednesday's edition of the program which had slipped my mind.

Somewhere in the middle-late portion of that program, Kaminsky was on his anti-technology jag again. At some point, a guest, either the Evercore guy or some portfolio manager- I think the latter- was asked about, I believe, Twitter. It was something estimated to be worth about $4B, and it wasn't Facebook.

In any case, the $4B number was tossed out, and this guy says, to paraphrase,

'Well, it probably will be worth $4B at some point, just not now.....maybe in a few years....'

He went on to essentially advocate holding the issue.

Kaminksy, meanwhile, was silent. I was incredulous.

Yes, and in a few years, what, maybe Yahoo will turnaround? Wal-Mart will come up with a strategy that works during economic expansions?

Isn't this sort of thinking about future large market caps the way the original technology bubble grew? Yes, it is.

There's a fine line between buying something before it's generally recognized to be as excellent performing as it may be, and buying something years in advance of a big total return payday. Kaminsky, of all people, with his fund management background, should know this. I expected him to excoriate the guest.

Instead, he was mute.

You can't make this stuff up.

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