Long Term Investors' Outpost Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Long Term Investors' Outpost

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JohnG who wrote (402)	8/20/2002 11:26:22 AM
From: JohnG	of 562

Malcolm Bersohn. Misdirection by the financial community is the heart of the matter. All the pundants and publications are in the "stock selling for profit" business rather than in the "helping custoners with their investments" business. Thus they report Earnings and P/E ratios based on "operating income" or "as reported" income rather than GAP income. Look at this WEB site. spglobal.com Is the correct PE for S&P 500 18.6 for FYE 2002 as has been quoted in many places and is based on "operating Income". Is it actually 26.8 based on "as reported" income. Hell no!! It really has been shown to be around 36 based on reconstructed GAP statements. Now, 36 is a little high when historically P/E has ranged from 10 to 20 with 15 being normal for S&P 500. The problem is not stock options even though those that never received them are bursting with envy and resentment. The problem is LYING by the financial community and corporations who miss report the quality of earnings every quarter with 1 time write offs that are every time write offs. So now we miss direct the public to by telling it that not expensing sdtock options is some big problem. They could say that the S&P P/E ratio is 36 but that it needs to be 15 to 20 so the S&P should really be 500 rather than 900. Will anyone ever say this?? Hell no!! It would be a devistating theme and wall street workers would be out of jobs and out of year end bonuses for the next 8 years. Thus, expect more lying and miss-direction. Watch Warren Buffet, the master market timer, moving through this mess picking up choice properties at reasonable prices.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next