Hey dudes,I just won $235 billion dollars in the Manitoba lottery and I thought maybe I should invest it, you know? So I looked around for the hottest growth stock I could find, and it turns out it's this communications technology company called Nortel Networks. It's quadrupled in the last year alone, so that means only two and a half more years until I'm a trillionaire. And you know what's even better? I've got enough money so I can buy the whole thing and still have $1.4 billion left over to buy a jaguar and stuff!! Woo-hoo!Anyway, I was all set to enter the buy order when my 10-month-old daughter told me "You know, Daddy, Nortel isn't making any money. They actually lost $0.2 billion in the last 12-months." And I thought: "Wow, that's a pretty coherent statement for her first ever words" and I even felt a little guilty having to chastise her with: "It's not about the past, honey, it's all about the future. Analysts are forecasting $1.81 for next year.""Well, Daddy, analysts are off by > 15% four times out of ten, and anyway that's still only $2.5 billion in earnings." [It's amazing how quickly your kids can learn to say "only $2.5 billion" after you win the MB lotto].I scowled at her, and was about to type in my trading password anyway, when she asked: "Can't we at least see what else we could buy?" By this time, my wife was looking over my shoulder too, and technically it's half her money, so I said "Hmmmphh! Well, OK, but this might take me all night." "We'll wait" they said.I emerged the next morning with the Augustus family stock ballot:Door # 1Nortel Networks: $233.6 billion in market cap -$0.22 billion in trailing earnings$2.47 billion in forward earningsDoor # 2:All 5 big banks (TD,CM,RY,BMO, BNS)2 piddly PQ banks (LB, NA)4 mutual fund companies (AGF, IGI, MKF, SZ)5 retailers (CTR, L, Metro, HBC, LNF)3 electric utilities (TA, NSH, FTS)2 pipelines (TRP, W)2 auto parts suppliers (MG, LNR)2 profitable biotechs (BCH, MDS)2 media/broadcasting companies (CGS, AAC)2 giant fertilizer companies (POT, AGU)The world's biggest gold producer (ABX)3 insurance companies (FFH, ELF, KFS)2 big forestry companies (FCC, NF)2 big mining companies (NOR, CCO)2 oil & gas producers (POU, PCP)2 profitable steel producers (IPS, HSG)4 engineering/construction companies (SNC, TIH, ST.a)Power CorporationBombardierATY TechsThomson CorporationEdperBrascanManitoba Telecom (not as big as BCE, but profitable)Lots of great beer and so-so wine (Unibroue & Vincor)10 successful small-cap growth companies2 dead fish (LDM, MCL)Plus enough left over to buy $13 billion worth of 6% bonds in case all hell breaks lose in the market.Total = $233 billionTrailing earnings = $16.3 billionNext year = > $17.2 billion (couldn't get estimates for all of them, so I just assumed constant from 99).And by the way, $7 billion of those earnings will get returned in the form of annual dividend payments.Can you believe it, they outvoted me 3 to 1 (even the dog turned traitor on me).Fuming in MB,Semper
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Rat