tag:blogger.com,1999:blog-9031526429482744032.post6892111884856950902..comments2024-03-29T00:20:06.554-07:00Comments on Don't fuck with Donville: Not so great ROE stocks: Open Text (OTC.TO) (Part III)Penetratorhttp://www.blogger.com/profile/01670644029306203741noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-9031526429482744032.post-19707601791124639992016-12-15T18:53:35.273-08:002016-12-15T18:53:35.273-08:00Yea, sometimes market value outperform business va...Yea, sometimes market value outperform business value "bigly", like Trump said. CL is always expensive like 40-50 times P/E and that's probably why its performance sucks.<br /><br />Btw OTC is looking good these day, average 3 year ROA about 11%, average ROE about 25%. Analyst forecast for ROA from 2017-2019 also hover around 11%. Thanks for bringing this to us, will keep an eye on it.Anonymoushttps://www.blogger.com/profile/17362142560218772902noreply@blogger.comtag:blogger.com,1999:blog-9031526429482744032.post-67579694960739511352016-12-15T17:36:18.315-08:002016-12-15T17:36:18.315-08:00On a period of 5 years, OTC beats CL easily and ac...On a period of 5 years, OTC beats CL easily and achieves about the same performance as MCO. <br /><br />On a period of 10 years, OTC kicks their ass big time. Penetratorhttps://www.blogger.com/profile/01670644029306203741noreply@blogger.comtag:blogger.com,1999:blog-9031526429482744032.post-39928271249126651402016-12-15T17:24:19.556-08:002016-12-15T17:24:19.556-08:00Yeah, that's what's not so good with OTC. ...Yeah, that's what's not so good with OTC. Their ROE is still low and they have an important debt. Not a great mix.Penetratorhttps://www.blogger.com/profile/01670644029306203741noreply@blogger.comtag:blogger.com,1999:blog-9031526429482744032.post-87043947310339911722016-12-14T20:09:07.783-08:002016-12-14T20:09:07.783-08:00ROA is a fairer metric for comparison across the b...ROA is a fairer metric for comparison across the board I guess.. I like some companies like Moody's and Colgate with 20% ROA and infinite ROE. That's my type, and I would get a hyper-erection if their P/E ever fall under 15. Anonymoushttps://www.blogger.com/profile/17362142560218772902noreply@blogger.comtag:blogger.com,1999:blog-9031526429482744032.post-43490995895137596552016-12-14T10:40:06.469-08:002016-12-14T10:40:06.469-08:00Great work! This is a company with impressive ear...Great work! This is a company with impressive earnings growth. Keep in mind that the R.O.E. can vary just on the amount of debt the company takes on. <br /><br />If you buy a house with a 25% downpayment and I buy the one next to it for 10% downpayment...if the houses DOUBLE in price and we both sell...my R.O.E. will be much higher just because I gambled with a shit-load of extra debt. (I would argue that you run a better ship. you are better at managing finances and controlling risks despite my higher r.o.e.) Angelo Dallashttps://www.blogger.com/profile/15684479515068422912noreply@blogger.com