SI
SI
discoversearch

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.
Non-Tech : HMT TECHNOLOGY - UNDISCOVERED YET!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Hayley who wrote (2151)2/22/1999 2:43:00 PM
From: Stockwizard  Read Replies (1) of 2253
 
When earnings come in at,for example, .25 for a year and the price of the stock is 10.00, there is a PE ratio of 40. If a stock then puts in a strong couple of quarters of, say .20, then the PE can consequently dive back to 10. But the next quarter, all it takes is for earnings of a penny, and the PE is right back over 30 or so.

Quick rough numbers. didn't want to use HMTT's because too lazy to do the exact figures now, but you get the point.

Realize that long term earnings growth is not an exact science. The reason why HMTT had a low PE ratio was that it was expected that their earnings would actually slow down. Low PE ratios are often good because they mean that the company is selling at a low price to earnings ratio. But be careful, low PE's can symbolize that the reason why a price to earnings ratio is low is because future expectations are not too good.

Sorry for the rambling, but I hope that this helps.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News