Chris, before I go to bed, let me have some fun.
Let's contrast two tech stocks in the abyss -- ADPT and SMOD from my humble FA perspective. Both companies currently get an 8 in my scoring system, which I assure you is good (For the lurkers, INTC 11, CPQ 6, Dell 5). In my Model Portfolio for the near term, which I hope I can announce shortly, none of the stocks are tech related.
But, like you, I have a fascination with Tech. ADPT is clearly one of the cos that makes computers function. It is selling at a PE of almost half its previous 5 yr low. Its PE is well below its ROE and its projected growth rates.
SMOD doesn't have any particular claim to fame, as its merely a contractor for others. The reason it and ADPT both get an 8 in my FA scoring system, is that it (SMOD) gets a -2 for its negative cash flow (investing in the future don't you know).
But, one of the attributes I've learned to look at as what is the projected growth rate for the current year (as well as the future). ADPT is essentially a flat line, while SMOD is projected to grow 23% in the next year.
I don't mean to be a kill-joy, as I've already indicated that they are both favs of mine. Just consider!
Berney |
