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Gold/Mining/Energy : Canadian Small Cap Stocks

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To: Gordo who wrote (139)6/23/1998 10:27:00 PM
From: Scott Mc  Read Replies (1) of 512
 
Gordo, thanks for the input, yes I do focus a lot on P/Sr and there are a few reasons...
1. Tech stocks are much easier to value
2. Much harder to fiddle with revenue nbrs, where as earnings are very easy to play with.
3. Much impressed with a book by Ken Fisher(son of Phil Fisher) who writes for Forbes(Superstocks)pub 1984, goes into much detail on P/Sr
4.If you read O'Shaunessy who back tested the US Mkt using S&P data and published his landmark book "What Works on Wall Street" you will find that P/Sr is a more consistent indicator than any other.

That being said, I still focus on earnings first, however when a company is losing money,Sales are an easy way to quickly value it in
relation to others in the same industry.
Also I feel it gives me an idea of potential earnings.
Scott
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