I may have exaggerated over the earnings criteria. They are important gauges to evaluate companies (or else why would I buy into JBIL). Sales, by itself, IMHO is very important too. I rather take flat earnings than flat sales(which means more clients, more production capabilities to serve the clients...)
My father runs a billion dollar electronic company with two partners in Asia, and they have over 7000 employees. He told me that to increase revenue and earnings at a rate of 10-15% is next to impossible (from a billion dollar base point, its 150 Million more revenue). A 6-10% are more realistic. Not only to get new clients and new contracts are tiresome, to increase the manufacturing capacity is tough too (gotta plan years ahead of time, and to make sure that there will be contracts then). Other than his own brands, Koss and Panasonic outsource their product with his company, Sony used to be his clients, as far as I know. As his company is not public, he does not have to worry about the earnings growth. He fed a lot of people with jobs and food in their mouths already.
If prices of stocks are alway trailing to earnings, Then INTC and MSFT sure do not deserve such prices, but nothing is stopping them from going higher. And stock market would not be so fun anymore.
On FDC, they have a market niche. But most of all, the media tried to make it unattractive now. If you look at the 10Q and stuff, you see a better picture.
Look at TXN, I personally dont think its an excellent company. But Richard Ney recommend it last year (for like 30) and now its in 100s now. This stock is heavily manipulated by the brokerage houses downgrade/upgrade lately.
And look at Intc and Msft, they are no longer as attractive as they were and showing a lot of flaws that they cannot cover. They were HYPED as the giants (dont get me wrong, they deserved as giants), but there are so many other giants out there who are covered by the media to save them later for manipulation. TXN stepped in last year or so to become the next INTC, and is still climbing with a lot of manipulation to set back the prices and to shake out the weak |
