How do you buy big cap stocks my friend it can not be by BOOK VALUE
Ah, but David--in that, you have hit the nail precisely on the head. If you check my postings for the past eighteen months, you will see that I have nothing more than a passing interest in the large cap stocks. It was to the detriment of my portfolio of late, but I felt that those stocks became overpriced, for the most part, two years ago, and there was little room or reason for their price to grow.
Clearly, I was wrong in that. But as an antidote for my not being able to find a stock whose price/value ratio I could tolerate, I became more interested in the unsung stocks of this market, the up-and-comers, the stories like Madera, HeartSoft and yes, even B.A.T.
Is Madera finished growing? No, we know this from their 10K, they need to make substantial investments in equipment to get there. But let me ask you this: Is Yahoo! finished growing? Is Amazon.com finished growing? Is America OnLine finished growing? No, none of them are, but they all three have rounded the corner enough that people have been willing to capitalize them to greater than the worth of Walt Disney Corp. (in AMZN's case), and their stock price grows by leaps and bounds each day.
I think what you and I both need to see, David, is the 10Q due out in the next week or so. That should show you that last year's 10K was not a fluke.
Cheers!
Rick |
