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

To: Seeker of Truth who wrote (48725)	11/9/2001 11:11:04 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 54805

Malcolm, I won't comment on SEBL since it is not very easy to value using my Buffetology approach. I will comment on INTC. OK, here is applied valuation from my point of view. Conservative INTC ROE based on the last 10 years of ROEs and on last year's FCF'OE is ~22%. Current equity is ~$37B, market cap $186B. Assuming 10 years of the same ROE + terminal PE 15 and adjusting for tax, the expected return is ~12% annual. Not high, but certainly not in the sell range. The big question is whether we can assume 22% ROE for next ten years. E.g. this assumes $670B market cap in ten years. Jurgis - Comments, flames, suggestions?