I do not consider Checkfree a hype stock, but rather a very unique company that seemingly has positioned itself to capitalize on the growth and development of electronic business commerce and home banking. The potentials are very large over the next several years and Checkfree is losing money while investing in its own future.
The payoff is not far away now, and greater visibility should become clearer to investors with each passing quarter. In the meantime, there is really no way to value this stock using any rational or traditional yardstick and so it fluctuates all over the place. An investor has to buy into what the company does, how it is positioned, and what its future growth and profitability could be. Whether you now pay 13-15-or 18, in two or three years you won't remember nor will it matter much, if the company lives up to its potentials.
If you are afraid of missing the boat, but also fear the stock could have a correction soon, buy half a position now and watch and wait.
I think a much clearer picture will have emerged within the next 45 days, during which time the company will have reported its fourth quarter results and discussed its future outlook with the financial community. I suspect that many of your reservations will disappear after that and you will feel more comfortable. I do not know what the price level will be at that time, but I am thinking and hoping positively. |
