Dear Vanni:
Thank you for your response. I have to be honest with you. I followed you over to this thread from the FPAM thread and just felt comfortable with Corel. Also, you are real. What you see is what you get. I like people like that.
Recently, there is an article in the Money Magazine, Sept issue ,page 86, by Peter Keating on investment style. Michael Murphy, editor of the California Technology Stock Letter adds the amount of research and development a firm spends to its earnings and uses this number for what he calls a "growth flow measure". Using his ratio, and Corel's R & D spending of 80 million--I hope that number is close to correct--pulling that out of the cerebrum--would place Corel's growth flow measure at 4X. the average technology firm trades at 12X.
One other measure he uses to ensure that a company is on track instead of spending R & D foolishly is to see if over 50 % of revenues are derived from products brought out in the last three years. With Corel's WP8-7-6 ect. generating over 50% of revenue alone, Corel can easily meet that criteria.
The last point I would like to make is the concern that one could be right about a stock yet not be recognized by the market; i. e. brokers,analysts ect. Many analysts for that reason recommend staying out of small caps. less than 150 million, 100 million, whatever.
But that is one problem as investors I feel we should all simply ignore. Eventually, Cinderella is going to be singled out and the rewards will be more than ample to cover the additional patience it took to Woo her into your carriage...The best to a real class guy.....gregor |
