Jason, thank you, you just proved my theory.
I will let Allen deal with WIND and I will try to deal with QCOM, since I just looked up the numbers. Where did you get the 212 PE number for QCOM? From the newspaper or some outdated website? Are you allowing this number to influence your investment decision, without validating it yourself?
The most common method of calculating PE is by using the last two qtr's earnings and the next two qtr's estimates, totalling 4 qtrs. QCOM's last two qtrs were .11 and .13. Next two qtrs are, per zacks, .19 and .33 totalling .76 for the 4 qtr. At the current price of around 60, QCOM's PE is 79.
You may argue that 79 is still a very high PE but it is a lot better than 212. If you are a long term investor and project earnings expectations for WIND and QCOM out 3 to 5 years, you will realize today's PEs are quite meaningless. The market is inefficient and there lies the opportunity.
On the other hand, if you are a short term investor, I think you should follow Stephen Neal's TA and forget about the PE.
I happen to believe in fundamentals, momentum, TA, astrology or any method that works. So far I have only found one proven strategy that ALWAYS work - BUY LOW SELL HIGH.
Ramsey |
