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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: Square_Dealings who wrote (37486)6/26/2002 11:30:08 PM
From: Berney  Read Replies (3) of 52237
 
MF, I have a hard time letting unsubstantiated "bogus" comments going unchallenged.

The problem with your 40x PE is that you have to look backwards to achieve it. It can be likened to driving a car looking out the back window. It gives you a great view of where you've been but is probably hazardous to your health. It has about as much value as justifying values based on "page views" as was done a couple of years ago with some forgotten dot bombs.

Here's the reality:

spglobal.com

Your 40x PE is correct. However, let's view the context. We have absolutely unprecedented write-offs of goodwill (i.e., AOL wrote off $60B). EPS is going to increase substantially just because these one-time actions are eliminated. Wish you well, but we just don't need the muckraking right now.

Berney
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