As most of you know, many of the largest IT/tech firms look severely undervalued going by financials, and it isn't limited to one firm, but they include:
MSFT
DELL
HPQ
CSCO
perhaps even firms like:
GOOG
INTC
ORCL
JNPR (for a growth story seems cheap)
Now certainly, all of the firms face a lot of uncertainty in the future regarding their business models, and many of these problems are well known. But taking a long term view, do we really expect these firms to be cannibalized by younger firms that haven't emerged yet? Or do we see these firms using their massive cash piles to keep adding new tech and evolve?
I'm personally bullish on all of the names above, interested in hearing thoughts here.作者: ba736 时间: 2011-10-12 01:22
what does "going by financials" mean?作者: needhelp1700 时间: 2011-10-12 01:33
Well, that's not a lot of detail.
Let's assume you're doing a DCF. If you think the firm is undervalued, then the market thinks your discount rate is too low?
If you're using "ratios" and a multiple, the market thinks your multiple is too high?
Either way, your (subjective) risk assessments differ -- so that's one way to resolve the disconnect.
> do we really expect these firms to be cannibalized by younger firms that haven't emerged yet
..and that's the other way: modify the cash flows directly. I guess you're implying that you and the market view earnings risk similarly, but you are projecting higher base-case flows?
> By solely looking at their financial statements/ratios.
I'm confused -- are you looking at the same financials as the market? Or do you have a different set of projections, which (all other assumptions being the same) produces a screaming buy recommendation?作者: Valores 时间: 2011-10-12 01:39
MSFT
DELL
HPQ
CSCO
stay away from msft that stock isnt going anywhere ..........dell is dicey as they are trying to reposition themselves ...........out of them all i like hp n thats not saying much
goog at 530 or so is a great deal ..............they have a lot of untapped potential
financial i would also stay away from .............if ur going to own then own jpmorgan .......feeling speculaticve then boa @ 7 is good ..................作者: defour44 时间: 2011-10-12 01:44
I didn't get the whole Google thing at first, but now I think they will be to the 2000's what GE was to the 1900's.
