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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: tekboy who wrote (25399)5/26/2000 3:45:00 PM
From: Mike Buckley  Read Replies (1) of 54805
 
Tekboy and all,

at what point does Q become a value play again

Funny you should ask. I've been following the price all the way down refusing to add any more to my portfolio until the stock becomes a value play in the way I percieve value plays on Gorillas. (I did add it to a child's portfolio at $80.)

If we use current consensus estimates and pro forma EPS numbers for the historical data, the $50 price tag results in a Fool Ratio (a version of the PEG) of 1.10. Ignoring pro forma data and using only the historical EPS exlcuding one-time charges, that ratio becomes 1.6.

To put those numbers into perspective, finding an enabling gorilla with a consumer-based mass market where the PE mutliple is about the same as the estimated growth is so rare that I truly never expected to see one again since I spotted Qualcomm at the time of the Ericsson capitulation.

When my wife come home this afternoon, one of the conversations we will have is about buying more Qualcomm if it gets close to $50. In my mind, that's when the stock becomes a value play. It won't be a value play in the traditional sense, but I've finally learned not to look at Gorillas and strong Gorilla candidates traditionally.

Comments anyone?

--Mike Buckley

P. S. I just gotta remind everyone not to make any investment decisions based on anything coming from my keyboard because I can be horribly wrong!
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