Sporadic Thoughts: A quick look at Symantec

Symantec (SYMC) looks somewhat alluring on the surface: it is trading at 18 times next year's earnings. It looks even more appealing if you factor in a $4 billion cash pile, which accounts roughly for 20% of the company's market capitalization.

Sporadic Thoughts A quick look at Symantec

Symantec (SYMC) looks somewhat alluring on the surface: it is trading at 18 times next year’s earnings. It looks even more appealing if you factor in a $4 billion cash pile, which accounts roughly for 20% of the company’s market capitalization. However, a look at company stock options expense kills the appetite for the stock, as stock options wipe out 20% of the earnings. Though the company has lowered stock options issuance, curbing it down 2%, the stock options that were issued awhile back are coming to haunt the company as they have a ten year exercise period.

Oh did I mention Microsoft (MSFT) is wanting to wet its beak in the security software market?

Please read the following important disclosure here.

Related Articles

The Slippery Slope of Student Loan Forgiveness

The Slippery Slope of Student Loan Forgiveness – Edition 2024

My daughter Hannah was just accepted to University of Denver. She might take out student loans. Why wouldn’t she?
Hedging the Portfolio with Weapons of Mass Destruction

Hedging the Portfolio with Weapons of Mass Destruction

Uber's business is doing extremely well. It has reached escape velocity – the company's expenses have grown at a slow rate while its revenues are growing at 22% a year.
2024 IMA Annual Client Meetings

From Twinkies to Rolexes (IMA Client Dinner 2024 Video)

Once a year, we host what the IMA team gently calls “client appreciation week.” This week is very special to me, as I get to meet people who have entrusted their life savings to us. 

Cable Stocks Keep Getting Punched in the Mouth

Despite weakness in cable stock prices, our thesis on Charter Communications (CHTR) and Comcast (CMCSA) has not really changed. We made a small, superficial change in the portfolio.

Leave a Comment