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Pastimes : Bad investing information/advice on the net contest

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To: Edwarda who wrote (89)	8/15/1999 5:43:00 PM
From: Chuzzlewit	Read Replies (2) of 214

Promises, promises <VBG> My humble contribution to the thread on valuing a stock and forecasting the future price of a stock: analyticalbooks.com techstocks.com My initial grentle response: techstocks.com More from the author: techstocks.com A more pointed rely to the author: techstocks.com And his final inanity: techstocks.com wherin we learn that: Mathematically there is no reason you can't consider the stock price to be a function of the price/book ratio and equity/share instead of the other way around. You can forecast the price/book ratio in the same way you forecast the return on equity a firm earns and the firm's growth rate. Once you forecast the growth rate of equity/share and the price/book ratio, you have implicitly forecast future stock prices. There is every reason why you can't consider price to be a function of the historic price/book ratio! This approach confuses input variables (price of the stock and equity per share) with the response variable (price to equity). TTFN, CTC

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