Good Industries That Are Misunderstood By Wall Street Analysts

[hyten1]

i think misunderstood is rare, however i do think there are times when wall street (humans) think something will happen a lot quicker than it actually does, some examples are:

 

- hard drives (hard drive will be obsolete next year!)

- dare i say autos (ev, uber will take over the world, no one needs autos anymore, time will tell)

- cable (cord cutting will decimate their biz)

 

 

hy

[BG2008]

i think misunderstood is rare, however i do think there are times when wall street (humans) think something will happen a lot quicker than it actually does, some examples are:

 

- hard drives (hard drive will be obsolete next year!)

- dare i say autos (ev, uber will take over the world, no one needs autos anymore, time will tell)

- cable (cord cutting will decimate their biz)

 

 

hy

 

Hyten1,

 

This is where I want to make a differentiation.  In the case of Cable, the thesis was literally, cord cutting will decimate their biz. They are going to die.  Now it is starting to emerge that the Cable companies can actually increase prices via their broadband internet.  It is very different when the market believes the rate of decrease is 10% a year and it turns out it was 3% and you can manage that down.  It is entirely different when the market or a large part of the market participant did not realize that the incumbent cable guys can actually grow because you still need the cord for the broadband access.  I don't know what the right terminology is here.  I was never good with semantics.  But some large segment of the investing world got it really really wrong.