On the Value of IDTI:
Note vv does NOT recomend buying ..
In fact it recommends selling..
But the question of value has been raised
so here is a piece from vv:
(note it probably does not take into account the pre-announcement)
vv site:
vectorvest.com
PRICE: IDTI closed on 05-Jun-1998 at $7.30 per share.
VALUE: IDTI has a Value of $13.70 per share. Value is the foundation of the VectorVest
system.It is a measure of what a stock is currently worth. Value is based upon earnings, earnings
growth rate, dividend payments, dividend growth rate, and financial performance. Current interest
and inflation rates also play an important role in the computation of Value. When interest and/or
inflation rates decrease, Value goes up. When interest rates and inflation increase, Value goes
down. Sooner or later a stock's Price and Value always converge.
RV (Relative Value): IDTI has an RV of 1.37. On a scale of 0.00 to 2.00, an RV of 1.37 is
excellent. RV reflects the long-term price appreciation potential of the stock compared to an
alternative investment in AAA Corporate Bonds. Stocks with RV ratings above 1.00 have
attractive upside potential. A stock will have an RV greater than 1.00 when its Value is greater
than Price, and its Relative Safety (see below) and forecasted earnings growth rate are above
average. In some cases, however, a stock's RV will be above 1.00 even though its Value is well
below Price. This happens when a stock has an exemplary record of financial performance and an
above average earnings growth rate. In this case, the stock is currently selling at a premium, and
the investor is banking on future earnings growth to drive the stock's price higher. This information
is very useful not only in knowing whether or not a stock has favorable price appreciation potential,
but it also solves the riddle of whether to buy high growth, high P/E, or low growth, low P/E
stocks.
We believe that RV ratings above 1.00 are required to consistently achieve above average capital
gains in the stock marke
Let us hope the FTC bites Intel real hard
and that Acer follows thru with the x86
everywhere plans
Charlie |
