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Strategies & Market Trends : The Rational Analyst

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To: Scott H. Davis who wrote (1414)9/10/1998 1:44:00 PM
From: HeyRainier  Read Replies (2) of 1720
 
[ Oils, Q, P, and Valuation ]

With regard to the 6 times EPS valuation, a difference between the Oils and the other companies you mentioned is that one group has such a valuation because of future declining earnings, while the other group has that valuation because of a future ramp-up in earnings that nobody has noticed just yet. I prefer the latter group for my portfolio. QSNDF and PERLF will pass these tests, while the Oils and AXC will not.

Regards,

Rainier

PS. Can somebody say...choppy market? I don't feel that we are ready to make a resumption of the bull run just yet...environment could bring the market in yet another choppy phase..."
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