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Gold/Mining/Energy : Ensco International Inc. (ESV)
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To: Roadkill who wrote (1580)12/4/1998 12:34:00 PM
From: LK2  Read Replies (1) of 2005
 
Roadkill, I don't know about oil drillers, but stock "value" and stock price are two different things.

In the early '80s, there was often a small percentage of stocks that sold below their net working capital, which is the cash on hand minus all debt. Obviously these were companies that were having earnings problems, but the stock price was less than the cash on hand.

In the current bull market (starting in 1982, 1990, 1994 or whatever date you pick), the stock market, based on book value, is more overvalued than at any time in its history.

So book value is only a very loose guide to stock price. Some sectors will sell far above book, while other sectors can sell near book.

Regards,

Larry
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