Larry Bellehumeur

Five Great Companies to Buy at a Drop

Many thanks for reading. One of these days, I'm actually going to write an article that people like....=)

PaulMars -- In terms of CL, it isn't a bad buy, if you are assuming that normal market conditions are present (by normal, I mean that we are entering into a normal downturn). There are a lot of ifs in their short-term potential growth (by that, I mean rising potential costs), and I don't believe that those are accounted for in their evaluation. I'm not saying that it should fall by 40%, but a 10-15% drop would put it more inline with expectations. They do have a great growth path internationally, and are ever expanding their market share (points that I don't disagree with you on). I just believe that you can find similar growth patterns for a lower price....

Experienced -- I wouldn't be so quick to dismiss LTE. You sound like you are in the Wireless space, so i am sure that you are aware that Verizon has formally announced their plans for LTE. I suspect that others will follow (I am a Sales Director for a company that sells to all major North American carriers, and I know that all of them have begun testing). As for WiMax, it may have some play in the Rural areas, but I don't suspect that it will ever be a large challenger.

My point wasn't that the company was going to roll over and die. Their business model is a strong one....my point was that I believe that there were serious challenges to its technology and this wasn't being factored into the stock price.

Your view points are well taken, though. I would still give it a superior Multiple to the general S&P at 18x or so times current earnings (even in a down market).

Again, thanks for taking the time to read, and to comment!