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Technology Stocks : Jimbo's Playhouse/CPQ -- Ignore unavailable to you. Want to Upgrade?

To: Jimbo Cobb who wrote (11724)	2/3/2006 1:28:45 PM
From: Paul Senior	Read Replies (3) \| Respond to of 12662

I mentioned CLMS because to me/for me, I figured it might have to be - like JNJ - a ltb&h kind of stock. But I erased the ltb&h part from the post 'cause I figured maybe for some here, they were looking for a couple of points gain real quick and then gettin' out. My point is that I'm not at all surprised your broker friend believes CLMS might be a 10-year ltb&h idea. Don't be backin' up the truck on my say-so tho': I been wrong so many, many times. ------ Discussion on Bosco & Crossy thread regarding couple of these money manager stocks. If I'm understanding Crossy right, he believes GROW has great prospects - it's growing assets like crazy 'cause it has funds in popular mining/metals arena - and is undervalued at current price as well. But his cutoff point for value is if the fund manager stock sells maybe at 3-4% of assets managed. I disagree: my old rule of thumb is that the manager stock is undervalued only if it sells below about 1.5% of assets managed (which CLMS does). (Also depends on type of assets managed. Bond fund/money-market fund managers manage lots of money but they don't get paid as much to manage those funds, so I wouldn't pay even as much as 1.5% to own such fund managers.) Some other points: these money management stocks are all - imo - expensive and maybe risky because they're already trading near highs and with high p/e's. OTOH, if you look at the charts of these stocks, it is up up up long term. In fact, a stock like TROW has had better performance over the past couple of decades than has the stock of W. Buffett's Berkshire Hathaway. Crossy has suggested CLMS as an undervalued play, and that I agree with, expensive tho' the stock seems to me. Given the good history of the stocks in the sector, and seeing GROW's growth, I talked myself into a few shares of GROW too. But I'm not so sure about that one, and I'm not so quick to add to it on dips. But MAYBE if the sector keeps doing well, one can do okay by buying a couple of stocks in that sector. (I do like to diversify this way.) All jmo, and if I sound like I know what I'm talking about - well, I don't. I have been wrong MANY, MANY times.