Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (8331)	8/15/2006 9:23:07 AM
From: Wyätt Gwyön	Respond to of 217705

let's see, 0.48 dividend divided by .4 return shows a basis of $1.20. not bad! their TTM EPS of 1.38 are above this basis. that's impressive for a tech stock. still, i do think such things are possible with public stocks as well. i bought VLO in 2002/3 as low as $6 and change, split-adjusted. their TTM EPS are $7.91, and in fact their forward EPS are probably more like $10. just last Q and this Q combined they will make $6 or more, so Mr. Market was offering a stock just 4 years ago on the public markets for a price equal to just 6 months of current earnings! and they say the market is rational... NB. i started buying VLO at split-adjusted $12 in 2002, so i had to endure a 50% drawdown before buying at $6 and of course felt "poorly" about that at the time. the stock had an incredibly low PE back then and it still does, despite growing earnings some tenfold in just a few years.