MOVING NOW! 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.

Strategies & Market Trends : MOVING NOW!

CTIC 9.090

0.0%

Jun 26 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mcweazy who wrote (6627)	11/18/2000 7:20:10 PM
From: ED_L	Read Replies (2) of 8046

Good stocks like CSCO can have terrible P/E ratios(or even a P/E of 0) and still do well. I look at Quick Ratio, Current Ratio and Revenue/Employee. Generally try to pick stocks with Quick and Current Ratio less than 2.5(preferably less than 1.5) and revenue per employee of greater than $150,000. For example CSCO has Quick of 1.67, Current Ratio of 2.25 and Revenue/Employee of $633,324 so it passes my test. ISEE has a Quick ratio of 1.35, a current ratio of 2.249 but fails the test of Revenue/Employee with only $40,024 (If a company is not even generating enough to pay the cost of employee's total salary, benefits and overhead costs its hard to see how stock price will appreciate).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next