Talk to Me Like I am Stupid: Public Valuation Edition
There is a company that owns four grilled cheese trucks. They have a stock valuation of 100 million dollars.
I am not a stocks and finance guy but how can this strike anyone as a good idea. I am sure they make good grilled cheese and can be more profitable if they own more trucks but I don’t see how they can ever be a 100 million dollar company. Barry Ritholtz is skeptical as well but market skeptics often seem powerless at combating market mania.
When I read stories about grilled cheese trucks being valued at 100 million, it reminds me of all the stories I read about market craziness before the 1929 crash.*
So how is this a good idea? Are we living in a time that is rich in capital but low on ideas? Can too many grilled cheese truck type public evaluations lead to a market crash? Do there need to be more avenues for getting funding/capital than going public with an IPO? I can see why the grilled cheese trucks would want to expand but there should be a better method of doing so than the stock market for such a small idea company.
*Insert Abe Simpson saying “I am not a crank.”