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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (43529)7/23/2011 7:02:58 PM
From: Paul Senior  Read Replies (1) of 78666
 
I'm still considering my response about this growth rate.

There are two definitional aspects. What is it that's growing when we say growth rate? Here the author means eps. What is meant by long-term? Here I infer it's the 3-5 year holding. (That ain't long term to some of us -g-) Is there a third aspect?: I assume when people talk about long-term eps growth rates, they mean compounded.

When I read this: "BNY Mellon also sports an impressive 12% long-term growth rate." , I assume that that is a fact, a historical number. Growth might not continue at that rate, but it was there up until now.

I initially believed the author was being tricky by switching me from historical to predictive --that what he actually was saying was that the 12 percent is from a few analysts predictions, and tricky to my mind because it had nothing to do with eps results BK has achieved previously.

I'm going to stay with that. I have from S&P, 2005 forward , eps as 2.15;2.05;2.38;1.22;-.93, 2.11. That doesn't look like 12% historical growth in eps to me.
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