RTCrawford's Weblog

I don't make this stuff up. I'm not that smart.

Archive for January 2011

Adam(s) and SLP Question

with 2 comments

It has been some time since my last posting, but a question posted by Adams1135 on Yahoo! Finance concerning Simulations Plus (SLP) caught my attention.

Summarizing, Adam(s) questions whether the stock is fairly valued, and, if so, wonders whether the company can grow sufficient to warrant holding the stock.  It caught my attention because my earlier analysis of the stock was referenced in response by another poster.  Not referenced was a brief addendum.

With that as background, I’d like to respond to the question, because it provides an opportunity to explain something I increasingly view as important — the link between strategic management and financial management.  Having analyzed the question of fair value in the first blog posting, this entry will focus on making the strategic/financial link.  Consequently, there is just one graph, one graphic, and little quantitative analysis.  This will surely please most and annoy few.

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Written by rcrawford

January 13, 2011 at 9:06 am

Posted in General