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Strategies & Market Trends : Gorilla Game Investing in the eWorld

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To: Mike Buckley who wrote (602)11/9/1999 11:25:00 PM
From: Mike Buckley  Read Replies (1) of 1817
 
Jill and others interested in valuation,

Go to the Motley Fool site and look up their section about valuations. Be sure to either download their free Pegulator (not available for a Mac) or use their web site that contains a free PEG calculator.

Learn to use the traditional valuations. Understand how they work and why they work. Though Moore and gang are right that gorillas always appear over valued using traditional valuations, once you understand how they work you can modify the interpretation of traditional valuations as you see fit to use with gorillas.

As an example, the traditional fair value using a PEG ratio is when the ratio is 1.0. However, being able to buy a gorilla when the PEG is 1.0 is very undervalued in my way of tweaking the traditional method. When the Ericsson deal was announced, Qualcomm's PEG was about 1.0, a very undervalued stock using my approach. Had the PEG been 2.0 I would have bought Q then anyhow, but I'm not sure I would have bought as much of it as I did.

Just my way of looking at valuations. There are lots of ways. Pick one that works for you over the long haul.

--Mike Buckley
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