Former Sun Microsystems' Scott McNealy on a Stock Price of 10X Sales
"At 10 times revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. That assumes I have zero cost of goods sold, which is very hard for a computer company.
That assumes zero expenses, which is really hard with 39,000 employees. That assumes I pay no taxes which is very hard. And that assumes you pay no taxes on your dividends which is kind of illegal. And that assumes with zero R&D for the next 10 years, I can maintain the current revenue run rate.
Now, having done that, would any of you like to buy my stock at $64? Do you realize how ridiculous those basic assumptions are? You don’t need any transparency. You don’t need any footnotes. What were you thinking?"
Tim Draper On Bitcoin
“This is bigger than the Internet. It’s bigger than the Iron Age, the Renaissance,” Draper gushed. “It’s bigger than the Industrial Revolution. This affects the entire world and it’s going to be affected in a faster and more prevalent way than you ever imagined.”
JFK, 1962
THE PRESIDENT. If the United States refused to cash in dollars for gold, then everyone would go to the gold standard and the United States, which is the reserve currency of the whole free world – we would all be dependent upon the available supply of gold, which is quite limited.
Obviously, it isn’t enough to finance the great movements of trade today and it would be the most backward step that the United States has taken since the end of the Second World War. We have substantially improved our position this quarter, the second quarter over the first quarter. Our loss is down to almost a third of what it was in the first quarter. Our loss, based on the first and second quarter of this year, is about half of what it was last year, and about a third of what it was the year before. We hope that we can bring our balance of payments into balance by the end of next year.
We are not going to devalue. There is no possible use in the United States devaluing. Every other currency in a sense is tied to the dollar; if we devalued, all other currencies would devalue and so that those who speculate against the dollar are going to lose. The United States will not devalue its dollar. And the fact of the matter is the United States can balance its balance of payments any day it wants if it wishes to withdraw its support of our defense expenditures overseas and our foreign aid.
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