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0 pointscount11y ago0 comments

The concept of a valuation being overinflated for a company that's trading publicly is kind of hilarious.

It's worth exactly what it's trading for at any given moment, by definition!

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1 comments · 1 top-level

While I agree with this sentement in general, the market price can be distorted by supply constraints. Ask all the people that shorted VW back in 2008 and got caught up in a short squeeze that made VW the most valuable company in the world [1].

1. http://en.wikipedia.org/wiki/Short_squeeze

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