Chaz too,
Great post!
On the subject of shiny pebbles, I think the idea of introducing a stock, concept or whatever in the context of the thread's subject should always be encouraged.
a low PEG for a subject company says that a lot of observers (other investors) have looked at it before me and concluded that an unfavorable comparison is warranted. OR, it could mean a large number of investors have not looked at it and it is way undervalued
Or it could mean that the market has for whatever reason been inefficient and priced it way too low. It's hard to grasp that possibility in this incredible bull market, but it does occasionally happen even using traditional valuations for tech stocks. I've made some great buys (Remedy, Software Artistry, Total Renal Care, Iomega, and others) in the past deciding first that a company is fundamentally strong and deciding second that it was on sale.
Given the opportunity, would you rather buy a great company with a great market opportunity, product and management team at an undervalued price or an overvalued price? When the market returns to sanity, that question won't appear quite so meaningless as it appears today.
Vision, even 20/100, might have.
I keep reminding myself that lack of vision is my biggest weakness as an investor. I'm working at it and getting better. But lacking the visionary skills and intuition, having the analytical skills makes me feel more comfortable about plunking down hard-earned and hard-saved dollars. I'm always trying to improve. Seeing the insights of others, especially on this thread, is a great help.
CMGI seems to have a track record...SFE needs to demonstrate the same.
I think that's a risk/reward thing. I haven't studied either, but I'm inclined to believe there is greater reward potential in SFE because it hasn't had any IPOs. When the IPOs start coming in a couple of months, it will get far more publicity and will be on everyone's radar screen. THAT is the most compelling reason for me to take a serious look at it now, not to mention the great respect I have for the people around here who have already taken a serious look.
Jill N: You busted Lindy right in the chops.
Ahem. Actually, she busted him in a completely different part of the anatomy. :)
--Mike Buckley |
