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Symantec Corporation Message Board

  • long_term_tech_investor long_term_tech_investor Feb 12, 2013 12:38 PM Flag

    Symantec Shares Clearly Over Priced

    The recent Cyber security hype is just another red herring that is helping stretch Symantec shares beyond reasonable and justifiable valuations. Less than half of Symantec's business is actually security-product specific and only a fraction of that being US enterprise based. So the recent hype of a Cyber Security Focus from Washington is going to have negligible impact to fundamentals. Further, and more importantly, the P/E ratio is completely skewed for the stock. The current P/E is now trading HIGHER than the 1yr forward P/E of large-cap software company peers such as Microsoft and Oracle, etc. And the forward P/E of Symantec is effectively going to be flat given the no-growth outlook for the next year. Any EPS benefit from cuts is going to be offset in charges and new hires. And all this assumes longer term execution without any hiccups, which given the mass disruption transpiring internally is a very risky and dangerous assumption to be making at this point.

    The stock has become nothing but a momentum play at this point and a very risk one at that. Foolish fund managers and small retail investors are not doing the homework and continue to be lured in by the editorial and sell-side analyst hypers. Enjoy the ride because this is going to have a very predictable ending when the fundamentals catch up to the stock. Assuming the market doesn't correct it first.

    LT

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    • First of all, enough with the lies. To clarify for the second time now, I never said the stock was getting ahead of itself at 16, it wasn't until after the September peaks breaching 19 that I began warning of some risks ahead until we had clarity as to what was going to transpire with some future announcements. That combined with the fact the company was constantly lowering guidance and playing numbers games to meet already-lowered targets, such as deep discount up-selling, etc.

      People are free to make their own decisions but the facts, details, news and fundamentals I discuss are indeed relevant and often being overlooked by the paid professional hypers. I don't care about the ignorant fund managers who are foolish enough to buy into an over-extended market and stock, but what I do care about is the little investors get some semblance of a balanced picture and not get lured into this gamed-up hype-train under false premises and unrealistic expectations.

      The stock, by almost any measure, is over priced and carries even further risk given the current market elevations and macro conditions. The company is still extremelycomplex and misunderstood and this is only going to worsen with the new organization layout. And just as during Salem era when the stock was undervalued, it is now the exact opposite where the stock is now overvalued. But the company still remains misunderstood. The fundamentals I've been speaking of WILL catch up with it, only a matter of time. Amazing how far the paid hypers and insiders are willing to game the stock.

      INVESTORS NEED TO DO THE HOMEWORK AND UNDERSTAND THE RISKS.

      LT

    • Is there an echo in here?

      • 1 Reply to c0ntrar1an
      • A huge echo. Long_term just likes to hear himself talk/write. This is the same guy who said it was overpriced at 16 and has yet to offer any sugesstions of what he would do differently if king than what the company has done in the last several months. My like is that everytime he posts the stock is overpriced it goes up. Would be happy if that continues.

        BTW, long_terms next two predictions: 1. Stocks go up and down; 2. the sun will come up in the morning and go down in the evening... I know, those are huge predictions and shockers!

        Sentiment: Strong Buy

 
SYMC
24.77-0.83(-3.24%)Jan 30 4:00 PMEST

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