• MonkeyGee : still overvalued

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• Stock_Drift OP MonkeyGee : I spent the better part of 10 years working on $Eli Lilly and Co (LLY.US)$ Semi-trucks, so long ago too. (Indianapolis)

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• MonkeyGee Stock_Drift OP : hope they gave you stock options shares.  if not short the X out of them

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• Stock_Drift OP MonkeyGee : They farmed out the work. I didn’t work for them.

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• Stock_Drift OP MonkeyGee : But I had decent security clearance on site. And they were/are secure. Lol.

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• MonkeyGee : LLY spending more?  LLY debt to asset ratio is over 2x already.

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• Junius Falcon MonkeyGee : So what, you think Amazon started debt free? Looks good to me, assets/debts >1. If they put our equity into good investment for return, that is good. It will help the return on equity ROE that LLY is really good at. It is not  ROE 20% per year, they did 20% per quarter, even Q3 annualized is >20%/y.

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• MonkeyGee Junius Falcon : don't think ROE has been going up.  it's sinking like the ship

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• Junius Falcon MonkeyGee : It was an investment spending that cut the Q3 earnings, as planed and explained in the fiscal report, resulting in trimmed Q3 ROE . How can a company grow without investment? That was the very reason why stocks are created for.

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• Junius Falcon : DCF is the PRESENT value evaluated from projected cash flows adjusted with an arbitrary discount/interest rate.
  Today's stock price, PE and analyst evaluation are already 1 or 2 years ahead, so the FUTURE value, assuming more growth thereafter (probably, that's why you need some news, insight and your own analysis to back it up).
  Therefore, it is overvalued currently, for the future growth potential.

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• Junius Falcon : Spend more time on fundamental analysis is more important than on technical analysis. Technical patterns are normally dictated by fundamentals (except speculator stocks or some deficit companies buy back their shares). Technical analysis tells the past for reference only.

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• Junius Falcon : So DCF tells the company is now overvalued by >2x, but as EBIT mentioned earlier it would double next year. You see the link? Everything makes sense now. Are you waiting to drop to 300 for a company most people want for its fast growth ? I hope not.

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• MonkeyGee OP Junius Falcon : where have I heard this one before?  if you lend me 5M, I will double it next year.  It sounds like a win-win situation.   I can't see any problem with this.

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• MonkeyGee OP Junius Falcon : You know technical is king right.  if not, then a stock would just trade at book value with fundamentals.

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