Reddit reviews Value: The Four Cornerstones of Corporate Finance

Value: The Four Cornerstones of Corporate Finance

http://www.amazon.com/Value-Four-Cornerstones-Corporate-Finance/dp/0470424605/ref=sr_1_1?ie=UTF8&qid=1377354617&sr=8-1&keywords=value

"It's beyond me how anything I've said implies that is my thinking."
"A P/E ratio does imply return as you said, but has no relationship to growth." Maybe I'm misunderstanding you but it sounded like you use P/E as a proxy to earnings yield without thinking about what a "fair multiple" is.
https://www.scribd.com/doc/79983013/UBS-Valuation-Multiples-Primer#from_embed

"You may want to check their financials - they're currently at 39.8% and i has steadily risen over the last 3 years"
I understand that, and what I was saying was that if you just run the numbers using their "price increases" and approximate average sale price per SKU, you'd see that the delta on gross margins over the past few years can't possibly be due to them increasing prices on the same SKUs because the delta is too low.

"What I heard was the SSSG was 2.5% not the 5% the street was anticipating"
Yes, and the entire point I was trying to make is that you need to understand what the stock price is implying, which is a big mistake that a lot of investors make (retail or institutional). Maybe I haven't communicated this well, but if you read this book (linked below), you'd see exactly what I meant.
https://www.amazon.ca/Value-Four-Cornerstones-Corporate-Finance/dp/0470424605

"Time will tell who is right."
Just keep in mind that using the stock price to verify your decision making process is essentially not separating type I vs type II error. The stock can work without the thesis being right.

I'll leave it at this; you decide how to take it.