Stock Bargaining while drunk: I bought Sigma Design(SIGM), Glaxosmithkline (GSK), Idearc (IAR) and Trina Solar TSL June 15, 2008Posted by deminvest in investment.
I found out there is one more risk for Proletarian investors: trading when drunk:
yesterday I had a few drinks with an old friend, got home, I switched on my Laptop and I started to see a bright World full of amazing opportunities for a super genius investor like ( drunkeness does that).
By my strategy I was supposed to buy just one stock and invest $ 1000 in June. This is what I did:
1. I bought 60 SIGM @ 16.95 each, spending $ 1017. Sigma Design is a chip maker specialized in consumer entertaining electronics. Sigma Design has really bargain level stock price and plenty of cash in its coffer:
Trailing P/E (ttm, intraday):7.01amazingly low
Forward P/E (fye 02-Feb-10) 1:7.31as above
Qtrly Revenue Growth (yoy):57.90% very nice
Qtrly Earnings Growth (yoy):-13.10% only dark spot
Total Cash:137.98M with a Market Cap (intraday):471.68M is really amazing. More than a quarter of what I paid for SIGM, was nice plain cash.
2. I bought 25 GSK @$42.37 spending $1059. Glaxosmithkline is a large pharmaceutical producer. Drugs are items on which people don’t try to save money, even when the economy is bad. I also read that Warren Buffet owns some GSK. Numbers are nice:
Trailing P/E:11.84 . Very honest price
Forward P/E ((full year ending 31-Dec-09) :10.28, which is OK
Qtrly Revenue Growth (yoy):1.70%, not very exciting
Qtrly Earnings Growth (yoy):-13.70%, hopefully will get better
Forward Annual Dividend Yield:5.00%, I love juicy dividends by strong companies like Glaxosmithkline
3. I bought 275 IAR@$3.629 Idearc spending $998 . It is a company in the old business of printing Yellow Pages ans White Pages. I haven’t looked at those old fashioned big dusty books for years, but maybe some people still prefer to use them rather than Goggle. Anyway IAR looks like a huge total bargain. It is very risky because the company has e debt of $9 Billion, three times its annual revenues. Let’s look at numbers now. They are very attractive because stockprice went down 90% in 9 months, even though revenues and earning didn’t deteriorate during that time:
Trailing P/E (ttm, intraday):1.23 Yea, one point twenty three. Amazingly low
Forward P/E ((full year ending 31-Dec-09):1.69 One point 69. A little higher than 1.23, but still the best bargain I ever saw on Wall Street
Qtrly Revenue Growth (yoy):-4.50% . No big deal
Qtrly Earnings Growth (yoy):7.80% . Excellent for such underpriced company.
4. I bought 45 TSL@$37.80 spending $1,701.00. Trina Solar is a Chinese solar panels producer that has been enjoying explosive growth since it went public last year. Last year I did buy TSL shares then I sold part of them gaining free TSL shares. June results for Trina solar beat expectations and its numbers are outstanding. A drunkard investor cannot, by any mean, resist those numbers:
Trailing P/E: 22.38, honestly cheap
Forward P/E (full year ending 31-Dec-09): 9.37 an absolute bargain.
Qtrly Revenue Growth (yoy):183.60% wonderful!
Qtrly Earnings Growth (yoy):170.70% fantastic!
Overall I spent $4775 instead of the $1000 I was supposed to spend. This is wrong because only by buying the same amount every month, I can be sure to buy near minimums. Now I can only hope economy and stockmarkets will recover from now on.