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Ron Sommer

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  • 2 Small-Cap Technology Gems [View article]
    In the 20-F filing for the year ending 12/31/11, the company reported cash of $18,716 million and ST investments of $66,247 million. I have not seen the full financial statements for 1Q12 yet.
    May 8 07:56 AM | Likes Like |Link to Comment
  • Is King Coal Dead? [View article]
    ANR is the least leveraged of the bunch and has the added strength of positive free cash flow.
    May 1 08:32 AM | Likes Like |Link to Comment
  • Dividends, Valuations And The Financial Industry [View article]
    Tom,

    I start my analysis using the regressions of multiples generated by Aswath Damodaran, a finance professor at NYU. He publishes a ton of data on his site.

    http://bit.ly/w4jRpw~adamodar/

    I fiddled a bit with his coefficients as I think there is still some inflation. In the end, it is a matter of judgment and some guesswork.
    Apr 16 08:15 PM | Likes Like |Link to Comment
  • ViroPharma Is Poised For Gain [View article]
    At the time I wrote the article, VPHM was trading at $27.39. It reached a 52 week high of $33.17 in March 2012 for a 21% gain. A prescient person would have shorted the stock before this month's news release.
    Apr 13 10:03 AM | Likes Like |Link to Comment
  • Flying High With Alaska Air [View article]
    You are quite correct. I apologize to my readers for not doing a better job proofing the article.
    Mar 26 06:44 PM | Likes Like |Link to Comment
  • Microsoft: A Good Addition To A Portfolio Built Around Dividend Stocks [View article]
    I wrote about Microsoft, Google and Apple in August 2011. I do not believe I have written about MSFT any other time.
    Feb 21 07:25 PM | Likes Like |Link to Comment
  • Microsoft: A Good Addition To A Portfolio Built Around Dividend Stocks [View article]
    Your comment reflects the point I was trying to make. With a company as large and as widely followed as MSFT, it is very, very difficult to have an original insight.
    Feb 21 10:00 AM | 2 Likes Like |Link to Comment
  • Ken Fisher Picks: J&J, Amazon, Oracle, BASF [View article]
    I find it interesting that Ken Fisher, who popularized the use of the price/sales ratio as a valuation metric would hold shares trading far above the standards he set.
    Feb 13 12:30 PM | Likes Like |Link to Comment
  • Netflix: My Missed Opportunity [View article]
    Chris,

    I primarily focus on estimating EV/Invested Capital by looking at sales growth, ROIC and debt to capital. I also estimate EV/Sales by looking at sales growth, debt to capital and the tax rate. I think these are essential drivers of market value but reflect the powerful influence debt has on the company.
    Feb 7 06:49 PM | Likes Like |Link to Comment
  • Netflix: My Missed Opportunity [View article]
    Thank you all for your comments.I don't usually look over my shoulder at past decisions but NFLX just seemed to stand out. As I wrote above, the shares are overpriced, by my estimation, and I personally experience service issues. I did not buy NFLX before and I don't intend to buy now.
    Feb 7 06:43 PM | 1 Like Like |Link to Comment
  • Qualcomm Runs With The Bulls [View article]
    I do write about stocks I own. However, I would not want to be accused of pumping a stock either. In any event, there are more stocks that may be good investments than I have available funds to invest.
    Jan 17 12:31 PM | 1 Like Like |Link to Comment
  • Against The Grain: Abbott Is Not Worth Your Money Now [View article]
    ABT is a good company with a meaningful dividend. However, neither the dividend nor the pending split tell the whole story. A look at the fundamentals show some deterioration. I see operating margin contraction since 2009 and concomitant contraction in ROE. The dividend payout is 64% of earnings which, for me, is high. Analysts are revising downward forward earnings. ABT is selling at a substantial premium to its industry median on an EV/EBITDA basis.

    I am long ABT but will consider selling in the near future.
    Jan 14 12:33 PM | 1 Like Like |Link to Comment
  • 5 Small Cap Software Companies Worth A Look [View article]
    I stand corrected. EBIX pays a dividend of $0.04 per share producing a yield of approximately 0.2%. (two-tenths of one percent).
    Nov 28 01:03 PM | Likes Like |Link to Comment
  • Barron's Got It Wrong On Covance: We See Good Reasons For Current Valuation [View article]
    Covance had had a difficult time over the past several years and the turn-around, as you point out, is taking longer than expected. I conclude the article with a FMV of $44-$45, just a few dollars less than where the stock trades now. I did not bash the company nor did I state the company would not improve sometime in the future. I agree with you that we should wait until we can evaluate the company's performance after these changes have had time. By the way, I do not adjust earnings for restructuring charges or any other charge assumed to be one-time. For this reason, I differentiate between reported earnings and operating earnings and pay attention to free cash flow.
    Oct 17 07:08 PM | Likes Like |Link to Comment
  • Barron's Got It Wrong On Covance: We See Good Reasons For Current Valuation [View article]
    I did consider the restructuring charges. For this reason I spoke about earnings from operations and operating margins.
    Oct 16 10:26 AM | Likes Like |Link to Comment
COMMENTS STATS
92 Comments
37 Likes