{"id":3446,"date":"2014-03-21T13:17:13","date_gmt":"2014-03-21T13:17:13","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=3446"},"modified":"2014-03-21T13:17:13","modified_gmt":"2014-03-21T13:17:13","slug":"3-21-14-good-week-for-pc-stocks-note-our-late-2012-call","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=3446","title":{"rendered":"3.21.14: Good Week for PC stocks &#8211; Note Our Late 2012 Call"},"content":{"rendered":"<p>PC stocks had a great week: Hewlett-Packard, (HPQ) broke through $31, Microsoft (MSFT) broke above $40, and Intel (INTC) is trying to break above the June &#8217;13 high of $25.98.<\/p>\n<p><a href=\"https:\/\/fundamentalis.com\/?p=508\">\u00a0Here <\/a>is our article from early October, 2012, detailing the attractive valuation of the PC stocks. Some of these stocks were trading for scrap value.<\/p>\n<p>This article was so toxic, <a href=\"http:\/\/www.seekingalpha.com\">www.seekingalpha.com<\/a> wouldn&#8217;t publish it. The editors rejected it.<\/p>\n<p>The overwhelming positive to the group at that time was the cash-flow valuations. You can obfuscate cash-flow, but it isn&#8217;t easy.<\/p>\n<p>Cash-flow is king for us as fundamental investors, which is why we are still a little leery of JC Penney. It is definitely not Best Buy (BBY) in terms of operating cash-flow. (JCP and BBY are retail, but I needed a valid analogy to make the point.)<\/p>\n<p>I do think the PC group is on the verge of transitioning from deep-value and strict value investors to the GARP or growth crowd. HPQ is still trading at just 3.5(x) cash-flow as of the mid-February earnings report,\u00a0while INTC is about 6(x) cash-flow.<\/p>\n<p>We need to update the spreadsheet in the original article.<\/p>\n<p>Trinity Asset Management, Inc. by:<\/p>\n<p>Brian Gilmartin, CFA<\/p>\n<p>Portfolio manager<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>PC stocks had a great week: Hewlett-Packard, (HPQ) broke through $31, Microsoft (MSFT) broke above $40, and Intel (INTC) is&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3446","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/3446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3446"}],"version-history":[{"count":2,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/3446\/revisions"}],"predecessor-version":[{"id":3448,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/3446\/revisions\/3448"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}