Holdings > Holding Rationales > ADBE: Adobe’s Sitting in the S...
Holding: ADBE
StockMarketBeat [757]
You are not tracking stockmarketbeat.
| Symbol | Sector | Return | Exposure | Trades | Last Trade | Status |
|---|---|---|---|---|---|---|
| ADBE | Software | -29.41% | n/a | 2 | 16-Oct-09 | Prior Holding |
24-Mar-08
ADBE: Adobe’s Sitting in the Suite Spot
Holding Rationale for ADBE.
My latest column is up at RealMoney. You can read the full article there, but here is a summary:
Adobe has also generated nearly $1.5 billion in free cash flow over the last 12 months, which gives it a free-cash-flow-to-enterprise-value-yield of more than 9%. That is nearly a 400% premium to the five-year Treasury yield.
Of course, the last six months have shown that attractive valuations can get you nowhere (or even put you in the hole). That is why the catalyst provided by the likely release of Creative Suite 4 becomes so important.
If Creative Suite 4 pans out like any of the last three product cycles, investors should start getting excited about it sometime between now and July. With consensus 2009 earnings estimates already at $2.07, a P/E expansion to 30 times gives a potential target of $62, up from a current $35.
If the thesis continues to play out, I’ll be able to stop kicking myself for jumping the gun.
Disclosure: William Trent owns shares of Adobe (ADBE)
William Trent currently owns put options against the shares of Lehman Brothers (LEH).
Posted at 10:22 in Holding Rationales | Permalink | Top
Hot Stocks on Watch...
The Q’s continue to rock out portfolios, Lehman Brothe...
investorslive
1 Month Since Start...
Click on the "long term" button, or click here to view! 19 ...
wavegenius
Forex Robots
Fap Turbo is one of the best forex software in the forex mar...
fapturbo
Closed Out HOMB
HOMB traded at a high today of 24.37. That is up 3.7% since ...
TwoCommaClub.com
Categories
Holding Tags
Watchlist Tags
Other Stock Tags
Archives
0 Comments on "ADBE: Adobe’s Sitting in the S..."
You must be logged in to post a comment.
Top