Sporadic Thoughts: A quick look at Symantec

December 9, 2005 – Minyanville.com
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?

Vitaliy N. Katsenelson, CFA

This article is written for educational purposes only. It is not intended as a recommendation (or advice) to buy or sell securities. Author and/or his employer may have a position in the securities discussed in this article. Security positions may change at any time.

Vitaliy Katsenelson

I am the CEO at Investment Management Associates, which is anything but your average investment firm. (Seriously, take a look.)

I wrote two books on investing, which were published by John Wiley & Sons and have been translated into eight languages. (Even in Polish!)

In a brief moment of senility, Forbes magazine called me “the new Benjamin Graham.” (They must have been impressed by the eloquence of the Polish translation.)

Don't miss new articles

We'll let you know when we publish new articles