<Assuming they earn .68 this year, and assuming best case scenario, using eps growth rate of 37.09% compounded per year, in ten years they will be earning $15.94 per share.>
I haven't checked your math but will assume you're correct. 37% growth rate is an good rate of return assuming no guarantee. Speaking for myself, ten years sitting on an issue makes me somewhat uncomfortable. The lack of guarantee is what bothers me. EPH, look what has happened in the last ten years. Mergers, buyouts, investor tone, etc. will influence the future. From a mathematical perspective, I agree, CPQ will take a run. So will several pharmaceuticals, oil interest, etc.
My goals are clear, work like hell early in the year and try to get my 30% ASAP. When done, go into an untraconserative mode for an additional 8 to 10 percent. Has worked well for several years.
Mike |
