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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: CommanderCricket who wrote (51973)10/21/2005 8:16:53 AM
From: whitepine  Read Replies (1) of 206203
 
CC,

I was trying to define a bottom price beyond which these stocks would not decline. So if CHK has a PE of 17, is it likely to fall, worse case, to 4 -- 11 -- or some other number?

Let us assume it falls to a PE of 8+. This implies CHK could fall another 50%.

I asked because I was curious how low esteemed members of the board thought stocks could fall, worse case. It is just another way for assessing downside risk. I've never heard this parameter discussed in this way, but to my simple mind, it seems like a way to project relative risk.

wp
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