Mike,
I cannot quibble with the logical method in which you come about in valuating this companys possible future income. You touch upon most of the important input criteria. However, I might question your projected PE ratio of 10. If you were to simply adjust the PE to something that could be more realistic for a technology company, instead of using 10, then some of your numbers may come more in line with my reasonable expectations. However, if you are going to unrealistically expect this company, or any other technology company to nominally trade at a PE of 10, then your world of stocks, worthy of short consideration, is nearly boundless. Most are trading at numbers far exceeding a PE of 10 and they, apparently by your premise, must be screaming short candidates. As for where I buy and where I sell, I use technical indicators only, to give me a time and price.
Good Investing, Ken |
