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Microcap & Penny Stocks : ALYA Cost cutting system via software as well as security

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To: Crossy who wrote (397)5/6/1998 4:56:00 PM
From: MKTBUZZ  Read Replies (2) of 2534
 
Crossy,
The ratio you're using is an economic ratio and not a financial ratio. PSR is used by a company to look at the price of the widgit to the total sales of the widget. Economic ratios are not useful in valuating a company from an investors point of view, they're useful in helping a company make economic decisions.

Some ratios that are useful from a financial point of view are PE, P/CF, and P/BV.

Earnings are really the only thing that matters, future or otherwise. And earnings in terms of profits not revenue or sales. We only want to buy a company that can show profits, now or in the future. Look at Crown Books, big company with huge sales, but they announced today they may have to declare bankruptcy because they're not earning anything.

OTCs are difficult to run numbers on, but using sales is not correct. IMHO.

Sincerely,
MKTBUZZ
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