About "30 Stocks on Sale". Well we all have our different ways and opinions, I guess. But man, that list to me looks like about the worst I've ever encountered as regards the use of price to sales ratio.
I can't actually figure out how the author uses p/sales ratio. Looking at the large cap portion, Supervalu (.27) is in there because (?) it has a low (?) p/sales number or because it's lower than the next in line AMR (.29)?
For one example, these grocery chains are going to have low p/sales numbers. The author's got to compare Supervalu's number now with Supervalu's numbers in the past. And that .27 is very very high when this comparison is done. Which means SVU is likely not a buy for value investors now, or if it is there's danger at current high price. Of course, one could, I suppose, say it is a "stock on sale", in the sense that every stock is on sale and somebody is buying or selling SVU every trading day.
I'm holding several stocks on that list, and some of these look to be closer to sells than adds. I don't want anybody telling me for example that AVT (at near highs now at $42), is a buy now. I wanted to hear that last August when I posted I was adding to my position (@$17.37). I'm considering SELLING AVT; am not at all looking to buy. It's too expensive now for a buy for what it is. (Jmo)
I scanned the list. Nothing there for me that shows real attractive for initiating a new position. Maybe a relook at Stein Mart for a second glance.
Of course, all jmo. Others might see it very differently. |
