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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Bernie Goldberg who wrote (8357)	8/30/1999 8:11:00 AM
From: JZGalt	Read Replies (1) \| Respond to of 18928

Bernie, I've read them and find that p/sales is flawed for all but companies which sell vast quantities of goods (aka retailers and low margin businesses). In the stocks I follow (high tech and very high margin businesses when looking at roe and roa) p/sales ratios tend to be useless. Applying a good tool to the wrong application is just as bad as not having the tool at all. So price to sales might be a good indicator for O'Shaughnessy, but only if you follow the rest of his criteria also. Occasionally our methods cross (JBL last fall and GALT in January), but mostly we operate in different venues. ---- Dave