What's it Worth? 57
Glen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Hello again, my name is Glen Bradford and I am going through the S&P500 and pricing the stock market, one company at a time.
346. Harris Corp. (NYSE: HRS) is doing buybacks on the borrowed dollar. I would normally dislike this but I think that they are fine for now. I actually think that they are remarkably cheap. I'm a fan of the buybacks. They've been a growth story and are forecasting growth and are doing buybacks at a cheap price. Brilliant. Target: $45-$55. Outperform. They also come with a solid dividend of 2.7% at present. If I was them I'd cut the dividend in half and do more buybacks. It's better for long-term shareholder value at these prices. When the valuation is low I want companies to do buybacks and when the valuation is high I want them to pay dividends.
347. eBay Inc. (NASDAQ: EBAY) just capped off a pretty blockbuster 2011 and is trading at what appears to be a relatively cheap valuation. I would have expected a minimum of 15x earnings given their future estimated growth rate. Target: $37-$42. I will say that PayPal is worth $25 alone. I am not a fan of PayPal's willingness to cut people off from their accounts or other various policy ramifications. They could do things a bit differently in instances like those. Outperform! I'm betting CAPS points here.
348. Dell Inc. (NASDAQ: DELL) is being argued as undervalued as analysts race to upgrade their price targets. I don't see Dell as a growth company. The price has done nothing but go up since the beginning of 2012. It's actually rather remarkable. I think that the valuation as it stands is hitting the upper end of where I'd be willing to own Dell. Dell doesn't pay a dividend. For the price, I prefer HP computers to Dell computers. Dell just is boring. Computing doesn't have to be boring. The most I'd pay to own dell is 8x next year's earnings, which is around $18. Target: $15.50-$17. I also think that Dell could handle kicking out a dividend.
349. Electronic Arts (Nasdaq: EA) is difficult to price because they are running negative earnings. Sure, they just beat earnings. I'm going to say that this doesn't matter to me. Their spending on R&D is what keeps the company afloat. I hate to rain on the parade here but I don't like companies that don't make money. They haven't made money since 2007. I think that programming has become so dynamic these days that the old art of companies putting together games for users is a model that won't work as well as existing gamers / coders putting together their own stuff at home in their spare time. Call me crazy but take a look at the success that is Minecraft. A video game is only as good as it generates positive feelings and feedback in its players. It doesn't take the best graphics or experience to do this. Target: $14-$17. I don't see it going much higher on the fumes that aren't backed by earnings.
350: EMC Corp. (NYSE: EMC) just came out with a strong quarterly report on Jan. 24. No surprise here. The company was undervalued to begin with. Target: $25-$31. I think that there is a running upside here as EMC runs with new storage strategies. Barclays targeted $34. Where are all the other analysts out there that should be raising their targets? CommVault seems to be overvalued by comparison. In a nutshell, this is a growth company trading at stalwart valuations. Outperform. I'll be playing CAPS points here.
That's all for now, if you want me to price your company shoot it to globalspeculation at gmail.com
Motley Fool newsletter services recommend eBay. The Motley Fool owns shares of EMC. bradford86 has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.