Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (9458)	12/30/1999 9:54:00 AM
From: Ron Bower	Respond to of 78568

James, After further DD, I backed out of my LII position. Debt load concerns. Ron

To: James Clarke who wrote (9458)	12/30/1999 2:37:00 PM
From: Paul Senior	Read Replies (4) \| Respond to of 78568

I'm considering buying Qualcom today at 661 for target price of 1000. That's a 51% expected gain for a 12 month target. It seems easily achievable, especially as we're seeing the strong momentum and sharp runs with it in the media. It's a gorilla with a bulletproof lock on technology that will impact many people's lives (or so I read). It's a word - qualcom - that's entering our daily financial lives (much as we try to ignore it) Problem is that I see World Fuel Services Corp. (INT) coming on strong to challenge QCOM. INT "markets aviation and marine fuel services, and recycles used oil." The stock is down for a number of reasons: 1)a customer defaulted on the money INT fronted them to buy INT's aviation fuel (loaning the customer money, and occasionally getting stung is "normal" (my opinion) in this business), 2) they made an acquisition and are having some trouble digesting it (a heck of a lot of fuel was stolen out of Nigeria). So of course, the stock is bouncing around its yearly lows. At some point (assuming people still travel by plane and aren't all just talking on their ASICs cell phones), it's reasonable, imo, to assume that INT will overcome its current problems, maybe not face such difficult new problems and as result-- return to earning 15% or more on its stated equity ($8.3/sh) and again (as it has in almost all past 5 years) trade at 1.5 times stated book, and at a price above $11 /sh. That's a 52% gain (which could be achieved in 12 months)from the approx. $7 1/4 sh. price. Which beats qualcom. I just have to go with INT. Don't really like being in the crowd on this one, but I'll go with what I assume everybody is saying, which is... INT will beat QCOM. :>) Happy New Year, you guys!