Ibexx.. I'm trying to decide whether to buy SAPHY. I'm always a bit reluctant to buy high P/E stocks, because I figure a stocks price can go up either by increased earnings or by the market awarding those earnings a higher P/E, or both. With a high P/E you forfit one of those chances. With the market at its present statospheric levels, it's very difficult to find bargains like Intel in 1994. My initial investigation suggests that SAPHY is probably the best play on the Euro. I don't think the Euro problem is fully priced into the market. For a while there will be two cuurencies, evrything has to be counted in both. Old software can't handle this. The Euro conversion is not a given, but I suspect the European politicians want it badly, because it gives them cover to reduce the eurosclerosis problem of too much welfare state. When they have to cut back, they will be able to say "it's not my fault, the Euro made me do it" Of course, it will also be good for Europe. I note that the other companies in a similar business, and indeed most software companies have at least as high P/E. Computer Associates, one of my long term holdings, is also a good play. Among other programs, their CA Accpac is the best selling mid range accounting software. I'll have to make up my mind before I leave for France. Decisions, decisions....
good investing ... Luke |
