Ok, how about Mcafee? They have a superstrong balance sheet,
incredible earnings growth, an appropriate to undersized 1997 PE,
and are pulling back currently just under 47. This company is
on a superstrong uptrend, has market share, creativity, and
the talent and great management to keep it moving. Not shy about
appropriate acquisitions, with 113 million in cash and no long
term debt. Latest earnings before acquisition charges were
phenomenal, and beat estimates even after charges. Have two
friends that work there. They are good at holding down costs,
and administrative expenses are not rising out of line of earnings.
I often look at these expenses and how they grow as an indication
of good management. MCAF has been the first to rebound after
market pullbacks, and has held steady. A good buy at these
levels.
How about USRX? Someone else suggested it, and I agree that we
have a great long term buy here, but I would wait until the market
sorts itself out because USRX has yet to show that it can withstand
significant market pullbacks. If the market continues down as
I think it will, should be able to pick it up up to 10-15% cheaper
than current levels. If not, won't lose out on long term promise
too much.
Michael Burry |
