I’m sure you probably know this—but it is usually a really bad idea to pay 43-times sales for a stock. Note that I did not say earnings . I said sales . Revenues. The ol’ top line . Before everything. Scott McNealy, the co-founder of Sun Microsystems, famously told investors it was insane to pay 10-times sales for Sun’s stock. Ten! 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 can get that by my shareholders. That assumes I have zero cost of goods… that assumes I have zero expenses… that assumes I pay no taxes… assumes zero R&D. … Read more