Author Topic: What are you buying today?  (Read 2195898 times)

Palantir

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Re: What are you buying today?
« Reply #140 on: October 01, 2013, 07:07:21 AM »
Might dip into Red Hat.

On first viewing Red Hat really doesn't look cheap.

I disagree. A 5% FCF Yield + historical growth rate of 15-20% gives me a pretty high expected return of 20-25%. Even if growth is cut in more than half to 7%, it gives an expected return of 12%, which is still good.
« Last Edit: October 01, 2013, 07:08:52 AM by Palantir »
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wachtwoord

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Re: What are you buying today?
« Reply #141 on: October 01, 2013, 07:14:41 AM »
Might dip into Red Hat.

On first viewing Red Hat really doesn't look cheap.

I disagree. A 5% FCF Yield + historical growth rate of 15-20% gives me a pretty high expected return of 20-25%. Even if growth is cut in more than half to 7%, it gives an expected return of 12%, which is still good.

Okay you're expecting continued growth in such high percentages. I usually don't do that . Thanks for the feedback though :)
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Palantir

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Re: What are you buying today?
« Reply #142 on: October 01, 2013, 07:19:25 AM »
^ Not quite, even if growth slows, I still feel that return can be high.
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wellmont

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Re: What are you buying today?
« Reply #143 on: October 01, 2013, 07:25:55 AM »
Might dip into Red Hat.

On first viewing Red Hat really doesn't look cheap.

you are correct sir. it hasn't looked very cheap in years. it's a growth stock and if growth ever slows there is lots of room to fall. it's trading at 3.3% earnings yield based on average of next fiscal year estimates.
« Last Edit: October 01, 2013, 08:17:43 AM by wellmont »

Palantir

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Re: What are you buying today?
« Reply #144 on: October 01, 2013, 07:36:23 AM »
Might dip into Red Hat.

On first viewing Red Hat really doesn't look cheap.

you are correct sir. it hasn't looked very cheap in years. it's a growth stock and if it growth ever slows there is lots of room to fall. it's trading at 3.3% earnings yield based on average of next fiscal year estimates.

Why would you ever use earnings yield to value Red Hat? Please familiarize yourself with the company.
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phil_Buffett

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Re: What are you buying today?
« Reply #145 on: October 01, 2013, 07:54:14 AM »
bought more BP and ZINC

fareastwarriors

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Re: What are you buying today?
« Reply #146 on: October 01, 2013, 08:07:32 AM »
I guess I have to wait for the debt ceiling debate for a bigger pull-back.


CorpRaider

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Re: What are you buying today?
« Reply #147 on: October 01, 2013, 10:03:34 AM »
I expect it would have to stay closed for at least a week or two to make an impact. 

Uccmal

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Re: What are you buying today?
« Reply #148 on: October 02, 2013, 06:13:47 AM »
I am really wishing the 2016 Leaps for Aig and Bac were out right now.  Things are looking more buyable, but I dont like the tight time frames to January 2015 so much.
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enoch01

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Re: What are you buying today?
« Reply #149 on: October 02, 2013, 06:24:57 AM »
I bought some BP yesterday.