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Ron Sommer  

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  • Evaluating Dividend Market Niches: 4 High Yield Container Leasing Companies Currently At Risk [View article]
    the data set i use comes from Thomson Reuters. They report FY08 operating earnings as -$6.3 million. The TEU number is a direct quote from Thomson Reuters, as indicated in the article.
    Sep 21, 2011. 03:20 PM | Likes Like |Link to Comment
  • Evaluating Dividend Market Niches: 4 High Yield Container Leasing Companies Currently At Risk [View article]
    The decline in global trade is apt to be more than a "soft spot" and rosy forecasts are self-serving. The real points that I believe I made are that valuations are deceptively low and that the dividends are unsustainable.
    Sep 5, 2011. 10:28 AM | 1 Like Like |Link to Comment
  • Teva Pharmaceuticals: Time To Buy [View article]
    UValue,

    I concur with your reasoning and your FMV of th company. Too mny folks focus on the short term to see the potential. I can wait 3 years for a 50% return! I prefer a dividend increase to a share buyback.
    Sep 2, 2011. 07:32 AM | Likes Like |Link to Comment
  • Teva Pharmaceuticals: Time To Buy [View article]
    Dear pdtor,

    Thank you for the comment. I do not see the comment as a criticism. Technical analysis is niot in my bag of tricks and your comment presents another perspective.
    Sep 2, 2011. 07:26 AM | Likes Like |Link to Comment
  • Teva Pharmaceuticals: Time To Buy [View article]
    The bear case for Teva is the same as other big pharma companies, i.e. the patent cliff they all face. Though I did not mention it in the article, I value Teva at about 20-22 times free cash flow of about $3.50./share. The free cash flow figure is well below current FCF. The higher multiple is in line with the long term average.
    Sep 1, 2011. 05:49 PM | 1 Like Like |Link to Comment
  • In a Clash of the Titans, Apple Offers Better Risk/Reward Than Google and Microsoft [View article]
    dvd,

    estimating EV/Sales requires an evaluation of the sales growth rate, operating margins, debt to capital and the tax rate. For more specifics, please see Aswarth Damodaran. He has written extensively on the topic.
    Aug 1, 2011. 07:54 PM | Likes Like |Link to Comment
  • Profit From Healthcare Consolidation [View article]
    The offer is for $6.25 in cash plus 0.0414 shares of MDF. At today's price, that is about $0.22 a share giving a total buyout price of about $6.47.
    Jul 26, 2011. 11:17 AM | Likes Like |Link to Comment
  • BlackRock Credit Allocation Funds: CEFs With Exceptional Yield [View article]
    Robert,

    Are they buying the same issues or is there little overlap?

    Ron
    Jul 26, 2011. 07:49 AM | Likes Like |Link to Comment
  • 4 Promising Medical Device Companies [View article]
    I think that is the point I made in my conclusion.
    Jul 20, 2011. 08:54 AM | Likes Like |Link to Comment
  • 4 Promising Medical Device Companies [View article]
    I point out in the article that the device space has several segments. I did not intend to compare these companies to one another. As you say, they operate in different segments making comparisons difficult, at best. I think these are all good companies to own; I think they may be overpriced at the the moment. I should have been clearer in my presentation. Thank you.
    Jul 18, 2011. 08:03 PM | Likes Like |Link to Comment
  • A Look at Investing in the Cloud [View article]
    It just might be that investors don't see the future as optimistically as WS. The range of overvaluation is the result of using more than one method to estimate value. Here, I emphasize estimate as there is no precision in valuation.
    Jul 12, 2011. 01:49 PM | Likes Like |Link to Comment
  • Juniper & Cisco: David vs. Goliath [View article]
    I obtain the basic data from Reuters Research and compute the EV and EBITDA numbers from there. I use th following formulae:

    EV=market cap+LTD+preferred stock+short-term debt-cash
    EBITDA=Pre-tax income+interest expense+depreciation

    I hope this helps.
    Jun 4, 2011. 09:23 AM | Likes Like |Link to Comment
  • Juniper & Cisco: David vs. Goliath [View article]
    Tom,

    Your analysis is right on. However, another way to look at this is by using the Price/Research ratio. Cisco has a PRR of 15.83 and Juniper 20.25. Ken Fisher argues that we should be looking for low PRR ratios. Fisher argues that R&D success is a function of good marketing. Using Fisher's criteria, Juniper is not spending enough on R&D to maximize its future. Also notice that Juniper has a PSR of 4.6X.

    Cisco, with a PSR of 2.12 and PRR of 15.83 is not great either.

    These measures are not perfect, to be sure but they do provide another insight.
    May 29, 2011. 08:26 AM | Likes Like |Link to Comment
  • Going for Growth (Part 3): Forecasting Future Earnings the Key [View article]
    Chuck,

    Another great article. I do wonder, though, where free cash flow comes in with your approach. I would think that free cash is a better measure than earnings.
    Apr 22, 2011. 04:19 PM | 1 Like Like |Link to Comment
  • Want to Seek 'Significant' Alpha? Look Beyond Dividend Stocks [View article]
    Chuck,

    Thank you for your insightful article and for moderating the ensuing discussion.

    Have you compared the total return of growth stocks (as you define the term) with undervalued dividend paying companies? can you also share your definition of undervalued?

    Thank you and i look forward to your series on growth.
    Apr 16, 2011. 12:39 PM | 3 Likes Like |Link to Comment
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