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

To: Jurgis Bekepuris who wrote (40034)	11/14/2010 2:19:01 PM
From: Grantcw	Read Replies (2) \| Respond to of 78744

CSCO may indeed go back to $16-$18. If it does, then we will have to revisit our diversification discussion and how crazy I am to have CSCO as 10-20% of my portfolio. :) I've been thinking a lot about normalized earnings and cash flow in this environment. We saw how some companies went from eps per share of $1 in 2007 down to a loss of a $1 or worse in the recession. So, when we're looking to apply p/e ratios to companies, what eps value should we use? The one from the growth period or the one to come in the next recession? Anyways, I'm not quite at a point where I have a systematic view of this, but I do think that if I'm looking at two value plays right now with decent p/e ratios and one still had solid earnings and cash flow through the recession, while the other didn't, I'd rather pickup the one that was solid. And that's what leads me to these big techs like CSCO. Anyways, no need to talk me down on lack of diversification yet with CSCO. :) I have more MSFT currently, but under $18 will have my buying more. Thanks, cwillyg