A tale of three companies

Next week I plan to invest some money in the US market. The money has been freed up by selling my Centrica shares (couldn't really remember why I bought them and I didn't see much future excitement for them!) Once the money has cleared its way into my US capable broker account it will be time for action.

I have identified three companies that I like:

Google

If only I had got in at the IPO! Google seem to have their hands in every type of internet activity at the moment. Search engine, email, usenet groups, blogs ... the list goes on. I haven't researched them thoroughly yet but when it comes to indexing all the information in the world Google seems to be a step ahead of the competition. Of course the share price looks crazy with a trailing P/E of 130 but this company is growing so fast it may still be a great investment.

One negative is that I already have exposure to Ebay, so to have over a third of my portfolio in internet stocks may not be prudent.

Qualcomm

Qualcomm owns a load of CDMA patents. CDMA is the technology that enables 3G telecommunication (video messaging and the like.) 3G is up and running around the world but is in its infancy. In today's connected world the growth possibilities are enormous. With the price at a post-bubble sober level and the company winning awards for being one of the best financially managed companies in the US it is definitely worth further investigation.

Continental Airlines

People would say that Google is a risky purchase with its massive P/E, but I would say CAL is far more risky. Owning shares in an airline is like walking through Baghdad without a bullet proof vest. Come high oil prices, terrorist attack or recession and airlines will be one of the hardest hit. Having said that CAL has already been hit very hard and is now showing signs of recovery. Valuing shares that do not currently make a profit is difficult but I think CAL could make a great recovery play if I feel brave enough.

Conclusion

The conclusion is that more research is needed! I don't think I would pass my due diligence checklist (see earlier post) on any of these companies.

I will publish my conclusions as I go along.

Good luck all value investors!