Bob Brinker: Market Savant & Radio Host Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Boca_PETE who wrote (5246)	5/30/1998 12:35:00 AM
From: kahunabear	Read Replies (2) of 42834

WS, With an S&P 500 price-to-book near 6 and P/E near 28 I am still concerned. After all, the inverse of 28 is an implied return of 3.6% on current earnings. If we are anywhere near the top of the earnings cycle (oops, those aren't supposed to exist anymore -g-), that seems pretty low, given the associated risk. I am curious what your perspective is on those key valuation ratios. Regarding "Paid out cash reduces book value"(when buying back shares) . Yes, but should it increase price-to-book, which is through the roof ? Also, how many companies, especially high tech, that buy back their shares actually show a reduction in shares over time ? BTW, what about those seemingly recurring non-recurring charges and merger/aquisition costs and layoff costs that whittle away at the underlying values of companies ? WS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next