Ausdauer: I mentioned WFMI because to me, it is similar to what I thought SNDK was 3 months ago, and perhaps it might appeal to readers here. It is a company selling at a relatively low price which is dominant in a niche market. A growth-at-a-reasonable price bet. A company, perhaps like SNDK, that observers, consumers, investors, and employees can get some enthusiasm for. For me, I see a company (Whole Foods) growing revenues from .3 to 1.4b since '92, increasing ROE, low relative pe, and still having room to expand. (Please note: I'm not intending to tout WFMI; just that I like the price currently, I'm establishing a small position (within a diversified portfolio), and I thought this particular stock might be interesting to thread readers.)
I use simple fundamental stuff for most investments: pe, price/sales, price/book, roe, dividend yield. Sometimes, I'll put a spin on how I look at those figures: dividend yield relative to S&P, or price to relative ROE, or some other manipulations. I'll use p/cash flow also --if I can easily calculate cash flow (-g-)
One determinant every investor has to ask himself/herself is: what will I do if my stock rises or falls? Basically (IMO), one either could sell or hold - but I'm saying each person must consider the buy choice and his/her proclivity for it: one either averages up as the stock rises or averages down as the stock falls. I am one who - generally - averages down as a stock falls and sells as a stock rises. I would never sell covered calls against a stock I hold. That, to me, is ridiculous. The SI guru on options is (IMO) Michael Burke (ref. his thread). I think he calls that betting against yourself.
Again, JMO, and I've been wrong many, many times before. Paul Senior |
