SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Gorilla and King Portfolio Candidates
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Uncle Frank who started this subject8/19/2000 1:08:08 PM
From: Seeker of Truth  Read Replies (1) of 54805
 
Still pondering the valuation problem i.e. how much more should we pay for G/K A than for G/K B? A related problem, at what price are all the gorillas and kings too expensive to put new cash into? I gathered some figures which may have little or no meaning. I suppose the "analysts'" average predicted 5 year growth rate as recorded in Finance! Yahoo has some value. I also think the profit margin has very great value. So I noted these for a few representative stocks. I concocted some figure of merit which is the P/E divided by the sum of the profit margin and the analysts' expected growth rate. I list these below. I'll store the figures for a year and then come back to them and see if the figure of merit had much relation to reality. In the mean time I won't put my money where my mouth is, i.e. I won't alter my investments according to this table. The P/E is the price at the close on August 18 divided by four times the most recent quarterly earnings per share. Unfortunately this made by the devil system deletes blanks! So my beautiful table is ruined! Anyway you can see the data below.
Stock Symbol Profit Margin Growth Rate P/E Figure of Merit
GMST 33.7 38.5 154.4 2.1
JDSU 21.8 49.2 219.4 3.1
VRTS 20 45.5 206 3.1
NTAP 12.7 51.7 260.9 4.0
SEBL 14.1 43.8 195.8 3.4
QCOM 20.7 35.5 55.3 1.0
EMC 19.1 31.8 123.7 2.4
CSCO 14.1 32.5 99 2.1
According to this QCOM is the best buy. Take it with a grain of salt. Any opinions?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News