Opperman: CPQ to scream from here
by: gabe2010 (39/M)
Long-Term Sentiment: Strong Buy 12/13/01 01:26 pm
Msg: 264543 of 264547
cbs.marketwatch.com 2DA246027334F0%7D&siteid=mktw
Q. Technology really took off over the past month -- do any industries here still look attractive?
Opperman: The box makers, with the exception of Dell (DELL: news, chart, profile), are absurdly cheap. Gateway (GTW: news, chart, profile) was trading at $1.50 above cash on its balance sheet with no debt back in September. It's probably up two-and-a-half times since then. It's still cheap, but not as much as it used to be. Compaq (CPQ: news, chart, profile) is probably up 20 or 30 percent, whereas Dell and Gateway have both doubled, so there's still room to run on Compaq. That's why it's one of the largest holdings in the fund. It's trading at half times revenues. If they get anywhere close to a 5 percent net profit margin at any point in the future, the thing will scream from here. |
