Just picked up some Google (GOOG) at $496.50, some FedEx (FDX) at $79.28 and some Amdocs (DOX) at $29.38.
On Google: picking up the preeminent company in its space at less than 1x growth is a no brainer. Sure, Google disappointed a bit, but it still had gross revenue growth of 39% (organic revenue growth of 34%) and GAAP EPS growth of 35% (non-GAAP growth of 30%). GOOG is expected to generate 2009 GAAP EPS just north of $20.00. So, at $496, GOOG is trading at around 25x earnings (about 30x 2008 projected GAAP EPS of $16.60). Oh, and did I mention that Google’s sitting on $12 billion of cash and has no debt?
On FEDEX: I’ve had this one on my watch list for several months (mentioned it in my previous post). This is a great company that’s simply facing a cyclical downturn. FEDEX will be one of the first companies to rebound strongly as we come out of the recession. You want to get in before things start to look rosy - by then you’ll have missed a 20% move up.
On Amdocs: DOX is a leading global provider of services and software to the communications industry (wireless and wireline). I owned the stock earlier in the decade (got in just after the tech/telecom bust) and did quite well with it. The stock is trading back down to about where it was just prior to announcing strong 1Q numbers in April. I wanted to get in before the company announced 2Q numbers next week.
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