On market valuation and AMBA sales

On market valuation, there was an interesting article (by Steven Blumenthal) in John Mauldin’s ‘Outside the Box’ titled ‘On my Radar’ June 3. Registration required but free.

On the AMBA sales, the result afterwards does not seem to me to dispel the lucid cogency of the MF case at the time. So if the aftermath was so good, why did the directors sell and when can they tell us the fascinating answer?

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On the AMBA sales, the result afterwards does not seem to me to dispel the lucid cogency of the MF case at the time. So if the aftermath was so good, why did the directors sell and when can they tell us the fascinating answer?

The answer is posted on the MF RB Amba board, if you have access. It’s notes from the stockholder’s meeting and has 65 recs. I asked about reposting it here, but it’s proprietary, as MF paid someone to go to the meeting.

http://discussion.fool.com/1069/annual-meeting-notes-later-today…

http://discussion.fool.com/1069/annual-shareholder-meeting-notes…

The short answer is that the key executives get stock options or grants each month with a vesting period of 4 years, so they have plenty of motivation, and plenty of investment in the company.

Saul

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the problem with market valuation is that it is not actionable unless you pick some rigid number as a buy or sell indicator . If you try to do that you probably will find only limited data to back your decision. Especially since major bull and bears don’t happen often enough to have many data points . I do not use valuation as a tool .

I regard stock picking as tactics not strategy. To win you need both. My favorite CaptainCC quote. " a rising tide lifts all ships.Except those that have already sunk "

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Thank you for that insight (I am not an RB subscriber).