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Strategies & Market Trends : What Works on Wall Street (O'Shaugnessy) -- Ignore unavailable to you. Want to Upgrade?

To: sea_biscuit who wrote (53)	3/28/1997 7:03:00 AM
From: Jeff Maresh	Respond to of 109

Dipy - I'm with you on this comment. Fisher's recommendation for buying big "smokestack" companies is to buy below 0.4 PSR and sell above 0.8. Also bear in mind that traditionally the Dow group has risen about 10% in price per year historically. It would be interesting to see if earnings have risen at much higher rates during the past few years which would lead one to justify higher PSRs. You Wrote: What is more important, however, is that even among these large companies, there are only two stocks that have a PSR < 0.6 and only six with a PSR < 0.8 ! Now, if this doesn't convince anybody that this market is enormously overvalued, probably nothing will. Regards Jeff

To: sea_biscuit who wrote (53)	3/6/1998 11:21:00 AM
From: sjemmeri	Read Replies (1) \| Respond to of 109

50 weeks ago you asked about the performance of 10 DOW stocks with lowest PSR (GM 0.26 S 0.55 IP 0.64 GT 0.65 WMT 0.65 UTX 0.79 IBM 0.93 AA 0.95 UK 0.97 XON 0.97) vs. Dow Dogs (T IP GM CHV EK MMM JPM DD XON MO). The almost 1 year return of the PSR stocks = 22.3% vs. Dow dogs = 18.2% (this does not include Dividend which may close the gap slightly). Of course, the DOW 30 is up 25% during the same time and, obviously, it's only 1 year results (I don't have data to backtest). More interesting is return of 5 lowest PSR stocks (WMT GM GT IP S) = 28.8% with not a single loser in the bunch. steve (Just an attempt to jumpstart this thread.)