Bilow, your point about the stock splits is well taken - When CPQ splits 2 for 1, the price will be half of what it was before. Value is the same.
Suggest that you concentrate on the big spread sheet toward the bottom of the Value Line page. Only suckers believe their timeliness and safety ratings. The far right hand part of the chart has those two parallel lines put their by some secretary. You can move those lines around if you'd like. The secretary has a lot of fun drawing them, you can too.
Meanwhile back at the spread sheet, the top number will show you that CPQ's PSR is too high, and so is the PE. However look at the number for the cash flow. It's way cool. Back out the capital expense. And the free cash flow is way, way cool. CPQ is running a great business. Stick around, the stock price will mirror those numbers. (Oh, and if you want to have as much fun as the secretaries, take the dotted lines showing a multiple of cash flow and change the parameters. You can move it around too.) Value Line's fun if you stay away from their projections, rating system, and cross out the text.
Caio |
