Uber – an Epochal Short?
Would you invest in a business that is alleged to have a “toxic” and “discriminatory” culture? What about a business that is alleged to have been investigated for a software tool allegedly designed to evade and deceive authorities? Would you invest in a business that potentially had equally deep, or deeper, pocketed rivals in almost every one of its business divisions?
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
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Jaco
:
Crazy times we live in, with crazy valuations too.
Jim Hasn
:
Hi Roger, thanks for the article. I wonder if these unicorn floats and their performance will turn out to also be an overall market turning point. I am on the fearful side when you look into the economics of Uber, Pinterest , Lyft, Tesla etc and the valuations . I suppose countering that is the Federal Reserve’s cooling of their heels on rate rises for the foreseeable future.
Cheers
Jim
Roger Montgomery
:
I wonder whether loss making businesses are truly more valuable when interest rates fall. I suspect the value of zero remains zero even when rates decline…