Bob Brinker: Market Savant & Radio Host 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 : Bob Brinker: Market Savant & Radio Host

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: sea_biscuit who wrote (14951)	8/15/2001 11:02:20 AM
From: Kirk ©	Read Replies (2) of 42834

Jen posted an article that goes a long way to agreeing with what I wrote yesterday, that P/E is not much use for evaluating cyclical stocks that are "off cycle"... The value investor in the interview she found discusses "Book Value" and why it is important suite101.com Q: Do you pay attention to the price-to-earnings (P/E) ratio? A: Yes, but P/E can be a bit deceiving because when you are dealing in small-cap value, most everything in our universe is cyclical, with earnings going up and down. And right now we have got a lot of very high P/E stocks because the earning are very low, and yet they are trading close to book value, because that's where they tend to trade when earnings are depressed. Q: So P/E for you isn't as valuable a metric as price-to-book? A: Right. Price to book and price to cash flow are more important to us. You really want to do an interesting comparison... do the book value for QQQ! :) Kirk

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next