Doubling in two years

Graco (GGG) has been in the back of my mind for a long time. In the spring and summer of 2016, I thought about buying some shares, but it didn’t seem to be doing much. I just discovered that during the time I hadn’t been thinking about it (since 9/2016), it went up by over 80%. It’s up a little over 100% in the last two years.

I was also thinking about Texas Instruments, so I compared the two charts, and the increase is almost exactly the same.

Applied Materials (AMAT) is up over 200% in the last two years. Lam (LRCX)is up over 160% in the last two years.

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Applied Materials (AMAT) is up over 200% in the last two years. Lam (LRCX)is up over 160% in the last two years.

Sounds like “Bubble Time” to me. :wink:

Denny Schlesinger

PS: No, I don’t know when “prick the bubble” will happen.

PPS: But it will happen.

PPPS: Caveat emptor.

PPPPS: :wink:

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I’m not so sure, Denny. The P/E of AMAT is 16.25, and PEG of only 0.37. The P/E of LRCX is 17, and PEG of 0.46. They both have over 50% ROIC, and their accounting is probably reasonably honest.

And Micron, with P/E = 6.5, P/B = 2.15, PEG = 0.25, EV-to-EBITDA = 4.13…

There are more stocks like this that might get taken down during a correction or worse, but then they would simply become better buys, unless something goes wrong with the economy and the demand for tech products. It’s not like Yahoo (e.g.) and all the vaporware companies during the dot-com boom.

Now adding “Blockchain” to a company’s name, that’s a different story.

And I’m not sure what will happen to the fast-growing-with-low-debt-but-not-yet-profitable companies that Saul has been so successful with in 2017.

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