ADBE

Investment Analysis Clubs Value Hounds
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If one conceives “value” as consisting of beaten-up cigar butt stocks, then this doesn’t fit. But if one views it as being a good price for a very good investment, then I propose that ADBE fits the definition, and I’ve bought a bit amidst this market swoon. I have no pretensions about having bought at dead bottom, however. Just nibbling in.

I’m looking at PYPL, as well, and may buy if this goes on much longer.

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If one conceives “value” as consisting of beaten-up cigar butt stocks, then this doesn’t fit. But if one views it as being a good price for a very good investment, then I propose that ADBE fits the definition, and I’ve bought a bit amidst this market swoon. I have no pretensions about having bought at dead bottom, however. Just nibbling in.

I agree Adobe is an excellent “growth at a reasonable price” stock. My creative friends all hate the licensing terms, and they all pay up anyway. The company has a significant moat. I’m planning on nibbling in here, maybe buying more aggressively if it gets lower ($250?).

Regards,

  • HCF
3

Okay, took a closer look at Adobe today and I’m not sure why this is attractive. It trades at 38 times earnings AFTER nearly halving its ATH. I see that it rarely trades below 30x earnings, but that still seems rich when google is on offer at lower multiples and higher growth rates.

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[ADBE] still seems rich when google is on offer at lower multiples and higher growth rates.

You’re allowed to own both. (I do.) I don’t find trailing P/E’s to be all that useful.

GOOG is hurting at the moment in part because of actual and potential governmental action aimed at big tech in general and Google, specifically. But the pending stock split and a number of new products and apps coming out will spark interest. Adobe has migrated to licensing fees, which for its Creative Cloud apps is a moaty cash generating machine fairly immune to macroecon risks.

Heck, MSFT is also attractive.

No need to bet the farm right now, what with all the uncertainty out there, unless you’ve got a fair number of decades in front of you. (I do not.) But I’m nibbling.

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