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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: yard_man who wrote (16091)2/5/2003 2:56:03 PM
From: Terry Whitman   of 19219
 
OK- Now you're making some sense finally. <g>

But, even if there are non-zero earnings at the bottom- they can still be quite small in comparison with ANY numerator(price). Since this is an exercise in comparison, I'd suggest that comparisons are very difficult to make on a fraction such as that.

Maybe earnings are so small at the bottom that the P/E is still quite high IN COMPARISON to previous low points. Even at a price of 1, the P/E is going to be high IN COMPARISON, if the earnings are .03.

As for discerning where earnings are going- That is way beyond my ability. The companies themselves cannot even do an accurate job of that- and their entire existence depends on it..
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