Yes, visibility is quite important. At least a 3 year visibility for me. Thank you for your valuable inputs as always and thanks for that reaffirmation for a 20 PE entry for a 40% grower. In fact, this 20 PE and stuff is the job that I do last.
It's like being a "construction company". Once the whole design and plan is setup for building a colony, the last part is employing the construction workers who will actually lay those bricks down.
Hence, my "water purifier" system for healthy water:
1) Management filter(credibility, vision, shareholder-friendliness, transparency, aggressive): 50% of the system
2) Past growth rate filter (viewing financial reports, visiting websites for news): 20% of the system
3) Future growth rate possible: 20% of the system
4) Getting a "value-zone" price entry(Usually, try my best to keep a PEG of less than 0.5 between Forward PE and Future Growth Rate.): 10% of the system.
Once something goes through all these filters, then I drink the water. Others can share their views too, so we all can learn together.
Edited by omshivaya - 08/Jul/2007 at 10:37pm
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