Category Archives: $XRX

$XRX – Price and FV Converged .. look to..

Take some profit here if you got in around the 10.5 level when first tweeted this name.Stock has made steady gains as ‘old tech’ gains favour with investors as the US Economy expands.

You’re decision whether you keep a core position as not sure about long term growth prospects for Xerox.

FV= 13.5 – implied growth around 7% with stock also at 13.5

Big Earnings week in the US…good numbers will hopefully settle the market…

One third of the S&P500 report this week….$NFLX reported good numbers yesterday…hopefully the trend will continue…

reporting today, amongst others are

$GILD (Gilead) FV=80
$XRX (Xerox) FV=13

and tomorrow $FB – FaceBook. On a 38% 5Y implied growth vs 60, $FB is not cheap but not too expensive, but a good number and outlook is expected…

Market sell off quite Savage but a look it as opportunity to load up good stuff…

As the market continues to rotate out of High Growth low earnings stocks, it seems to have dragged the broader market with it..

We get sucked into the hype around High growth stocks – but as long you keep positions small relative to the more established companies, it should feel like a knock back instead of a body blow.

The median 5Y implied growth of Old Tech ($HPQ, $MSFT,$ORCL,$IBM, $XRX) is only around 5%, whereas new tech ($FB,$GIMO,$CRM,$Z,$RHA) peaked to 45%.
New tech has given up around 5% points of growth and could give up more..the basis could tighten to 20 [15% on Old tech, 35% on new tech]

Stick with $CELG, $HPQ and similar stocks which are cheap.
Look to buy good growth stocks if you are not involved – $FB, $CRM and $RHA when they cheapen up to around 30 to 35% implied growth. They are great companies.

Steer clear of the Super Growth Names like $TWTR – these could fall another 40%.

2CentView added to it’s positions in $CELG and $YHOO and stopped out of $FUEL and $GIMO.