Stock Attack II - A Complete Analysis 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 : Stock Attack II - A Complete Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jeffsthoughts who wrote (14709)	8/12/2001 1:50:24 PM
From: Mark L.	Read Replies (1) of 52237

That brings up an interesting question that I never thought about. How do companies without earnings (and hence no PE) figure into PE estimates for the indexes? A situation where no company was making money would result in an incalculable PE for an index wouldn't it? It's actually pretty straightforward. All the earnings and losses are aggregated, and then that collective number is the denominator in the P/E. This year, however, some of the non-cash write-offs are so staggering (e.g., JDSU) that I wonder whether the people at S&P will want to make an adjustment. Certainly the situation gives ammunition to those who prefer to concentrate on operating earnings. I appreciate your making me reflect on this. I have in the past preferred to rely on "as reported" earnings, figuring that the big bath write-offs (usually cash) are a real, though perhaps overlooked, part of the picture. It's possible that even conservatives like myself ought to start concentrating on S&P operating earnings, at least for a couple of quarters.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next