Dronamraju Ravi Prakash

Symbol Name
WIT WIPRO LTD.
INFY INFOSYS TECHN ADS
SAY SATYAM COMPUTER S
SIFY SIFY LIMITED ADR
IIF MS INDIA INV FD
MTE MAHANAGAR TEL ADS
REDF REDIFF.COM INDIA
TTM TATA MOTORS INC
VSL VIDESH SANCHAR NE
RDY DR. REDDY'S LAB L

• Forward PE of 56.3 based on 2005 earnings of $5.61/share
  
• Forward PE of 43.3 based on 2006 earnings of $7.33/share

• Forward PE of 56.1 based on 2005 earnings of $0.57/share
• Forward PE of 43.8 based on 2006 earnings of $0.73/share

• Forward PE of 44.87 based on 2005 earnings of $0.83/share
• Forward PE of 36.16 based on 2005 earnings of $1.03/share

• SOLD GOOG @ 300. Seems like a decent decison. Market is still betting that there is more upside (or atleast limited downside to stock). GOOG is hovering between 280-290.
• Continuing to Hold NFLX. As expected, NFLX moved to $22+ range. Given the additional news about blockbuster's 2Q loss and lowered debt rating, things seem rosy for NFLX. Good business, weakened competition, continued expansion. Continue to hold.
  
• Bought AQNT. Aquantive had a good quarter, but not great. The stock is down a tiny bit from where i bought it. May be i should get out of this one..
  

• First off, I like juniper for a lot of reasons. This is a company that went through the downturn, re-organized itself and came back strong. Juniper deserves a lot of respect for the way the company bounced back. They figured out their key strengths and are #1 player in those spaces - including the acquisition of netscreen. Inherently, both those spaces are going to grow. Network security market is still nascent, and their high end router business will get a boost with the increased interest in the VOIP market in the next year. Vonage has more than 600K users and this is just the beginining. If you look at this space, you have to ask yourself a question, why do you have to pay a broadband fee and a telephone fee and a cable fee? Integration will play out, and juniper has a strong chance to supply the key infrastructure to the competitors (MCI?)
• High P/E stocks. The usual justification for high P/E is high growth. It's ok to pay a high Price to earnings multiple, if the company is growing fast. The PEG ratio is applied here. I subscribe to this view as well. What PEG ratio am I comfortable with? Using Yahoo! finance's juniper analyst estimate page, I see that while juniper has a trailing PE of 86, it's future (expected) p/e is 20 for the fiscal year 2006. For fiscal 05 we are looking at a P/E of 27. Given a 5 year expected earnings growth of 20%, we are looking at a PEG of 1 to 1.5 Looks like a good deal.
  

Is ebay buying at the top of the housing bubble?

The revenue that Rent.com is bringing in has been driven by a record year in home sales. In the U.S., the turnover of existing homes is running at a record rate of 9 percent, according to Goldman Sachs.
....
If real-estate activity remains robust, that's good news for businesses like Rent.com, which help homeowners rent homes or assist people in moving and settling down in a new place. Rent.com even offers a listing of local wireless phone services and dating services.

1. Look at the time value being paid by in-the-money or at-the-money options versus out of the money options. Frequently, i found that at-the-money options have slightly higher time value but better performance as the stock moves.
2. I prefer not to get into to really short term options. With LEAPs i prefer to time it somewhat in terms of the stock momentum. Watching the attrition in time value because of a flat stock price is not fun.
3. Tend to buy leaps ending in january. Mainly because of the tax flexibility. i have a choice to take the loss/profit in either year and timing coincides.