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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (36145)	12/7/2000 4:57:20 PM
From: Uncle Frank	Respond to of 54805

>> Have I convinced you yet? I find everything you have ever posted to be credible, but not necessarily correct. Besides, the gang would be disappointed if I started agreeing with you with any frequency. uf

To: Mike Buckley who wrote (36145)	12/7/2000 5:40:18 PM
From: akoni-1	Read Replies (4) \| Respond to of 54805

RE: PEG Ratios Mike, That was an excellent post. Thank you for your insight. I don't know if you achieved your goal of "convincing" Uncle Frank, but you caught my attention. I've come to a similar conclusion. After (1) finding a great company with a great future, (2) analyzing and categorizing the company's competitive position via GG criteria, and (3) examining the company's financials, the PEG ratio can, I think, help determine some guideline on when to buy. In hindsight, this is where I could have done a better job in 2000. Buying on the dips made sense at the time, but it was all relative. Kinda like buying a $300,000 house for $600,000 instead of $800,000. Gee, what a deal. For better or worse, I'm trying to be more mechanical for the future. I realize there is no algorithm to wealth, but I decided to use the following: Buy = PEG is less than or equal to 1.2 (a 20% premium) Hold = PEG is greater than 1.2 and less than or equal to 3.2 Trim = PEG is greater than 3.2 Liquidate = A negative change in fundamentals It's not the panacea, I know. Valuation is part science and part art. But the exercise of trying to develop a guide before investing my hard-earned cash helps give me some perspective and discipline which I need. We'll see if it pays off in about 20 years. Again, thanks for your insightful post.