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

To: Spekulatius who wrote (23959)	5/26/2006 1:45:38 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78688

Nice pop in EBAY as you know, Spekulatius. I've put MXIM on my watch list now. (I have a very very few shares of EBAY.) Okay, based on a Ben Graham looksee neither stock qualifies as a value play. Rather than focus on the balance sheet though, one might look at the income statement. Kinda/sorta what "value investor" Bill Miller might be doing. In that regard, some of these high p/e, high p/sales, high p/bk value companies are growing their sales and and are able to take (as measured by profit margin) money to the bottom line. Whether they can sustain this good business performance though, one has to wonder. (For MXIM, those numbers look VERY good for the past decade. But of course a very high p/sales to pay for those good profit margins too.) I see EBAY as having a franchise. Others might argue we're talking tech stocks, and one can be king-of-the-hill only for so long with any of these. For me, based on how I look at these things - a formulaic approach - I'm willing to pay the stock price (p/e) for the growth numbers I see. Few shares only though. Morningstar, fwiw (not much, -g-), is positive on both stocks apparently: biz.yahoo.com