Gorilla and King Portfolio Candidates Message Board

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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Mike Buckley who wrote (43371)	6/11/2001 2:43:06 AM
From: EnricoPalazzo	Read Replies (2) of 54805

VALUATION Therein lies the rub for me. Though I look forward to others' answers to the above questions and responses to this post, the valuation is a problem for me. The Fool Ratio is 4.5. I've never taken a position in any company (Gorilla or Wannabe Gorilla) with a PEG that high. And I hope I never do. My thoughts exactly. Revenues = $1 billion, cash flow (excluding financing) = $70 million, market cap = $15 billion. That's a P/CF of 200 for a company growing at 75%. While I believe that BEAS has potential to become a Gorilla, that seems pretty steep. I'm not ruling it out, but that's a major turn-off. I'd be much more comfortable at around $5 billion, especially with RMBS currently at $1.2 billion. Here's hoping that this is the beginning, not the end, of the discussion. best, ardethan

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