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January 8, 2012
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Synnex Corp. (SNX) (Zacks rank 3 - Hold) reports earnings Monday, 1/9/2012
( 1) for its last report, SNX reported suprise upside earnings of about +20 percent
( 2) From MY spreadsheets: SNX has:
a PEg ratio of 0.78,
a book value of $30.99,
a 1 year target of $32.60 +/-0.25, and a Fair Value of $51.20
So, people can play SNX for earnings ... or intermediate (3 to 6 months) to long term ( 1 year plus)
I have had great results buying stocks when the PEg ratio is less than one (1.0), along with many of the other calculations that I run through my spreadsheets, then I run the charts. Often, the difference between an educated guess right, or an educated guess wrong, comes back to whether I have read the annual and quarterly reports to get to know something about a company. Get to know the sector, the industry, and the competition of every company you plop YOUR hard earned dollars down for. That knowledge is important because NEWS, good or bad, of a customer, a supplier, or a competitor even if nary a peep is mentioned about your particular stock, can result in an up. or down draft, in your investment leaving you scratching your head trying to figure out what happened.
One last observation is the Fair Value calculation. I think that's worth a double take; ( $51.20 ) and why I rated SNX a BUY on Friday.
