FMR had a stake earlier in SMTC if I recall, somewhere back in August 97, I thought they had announced a 5% position at that time. Also, if I remember correctly, that is right about the time that the price shot up like a rocket :o)
I don't quite agree with the statement that P/E is a better ratio than PSR, but this is my feeling after reading a very good book by O'Shaughnessey called "What works on Wall Street". The book used 40-year statistical studies to evaluate different indicators, and it concluded low PSR ratios would yield on average better returns than shopping for low P/E ratios. It is a moot point for SMTC shareholders though, isn't it anyways since they already have it :o)
I think PSR is useful in that it may indicate a little better the potential future growth of a company, since it operates on sales (which is future growth) instead of earnings (which is historical growth). All are important if you ask me, the more information you have, and the better the numbers support similar conclusions, the better off you are. Use them all, then just throw the dart, hope for a little luck, and see if it hits the bullseye!
Thanks Leesa, you know the numbers, the information is appreciated. The difference between the high number and that of SMTC is quite large, so you could be the big winner, as one of the few REAL long-time share holders. Good luck :o)
Tood, just read your comment regarding PSR being useful when comparing to other companies with similar numbers. Agreed! Do you think the PSR comparison of an individual company vs. the industry group average amounts to anything? I compare individual company statistics to industry averages quite a bit, and base investment decisions on these relations. Stop that 20% thing though :o)
Regards, JB |
