Mike,
I agree with you on INTC. I would love to get in at under $60, but would be surprised to see it drop to that level. Calloway is also near the top of my interest list but I have revenue growth concerns. Do you think Calloway can continue to grow revenues at 15 to 20%? If so, I like ELY. (Did we also agree on Deswell Industries?)
2 Small Cap Tech Stocks of interest to me. Note: I currently own neither.
Innovex (INVX): supplier to disk drive industry (and is similarly depressed in price) but trying to diversify. Many on the INVX thread argue that INVX's technology is most cost effective. Mkt cap around $320 million. ROE over 27% for last 3 yrs. 90+% sales growth in recent year. Trailing PE @ 10. Almost zero Long term debt. 24% margins in recent year.
Electronics for Imaging (EFII): color printing. Market is set to explode IMO and they are well connected to major manufacturers. Recently some have begun to doubt management, however, so I am cautious. 20+% ROE, 40% sales/share growth, PE around 11, no Long term debt, margins around 20%.
In addition to INTC, one other tech stock that I think may just qualify as a value stock, although so many of the traditional valuations say "no" is Cisco. Despite high PE, high P/S, we're talking about a company with growing market power, ROE of around 25%, Sales/Share growth of 40% (although this growth rate may be slowing), around 17% margins, and no debt. This company can grow quickly enough over time to justify it's current high valuation. I estimate that _if_ Cisco can maintain 17% margins and 30% sales growth over 5 years, ROI should be at least 20% annually. It's not as cheap as INTC, but it's not nearly as inflated as it may seem at first glance.
Shane |
