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

To: jeffbas who wrote (16233)	1/22/2003 12:02:18 AM
From: Bob Rudd	Read Replies (2) \| Respond to of 78594

Jeffrey: I included SG&A because I suspect some of the costs associated with product development may be there in some companies, EBIT is an easier number to find than margin after R&D [screening) and I'm not interested in companies that run lean on R&D, but fat on SG&A. I agree with your conclusion providing they don't have to spend all the cash they throw off to maintain position and you don't have to pay too much for that basket of goodies. Ebay has a beautiful business model, margins and prospects but the price more than reflects this. Linear looks fairly priced to a bit on the high side to me. If it were to take another dip like October, I'd likely be a buyer. Someone with a better feel for the business...more ability to forecast the cycle might see it as more of a bargain, but forecasting tech cycles well is a rare talent.