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Strategies & Market Trends : Range Bound & Undervalued Quality Stocks -- Ignore unavailable to you. Want to Upgrade?


To: Esway who wrote (1782)4/12/2000 3:48:00 PM
From: Jane4IceCream  Read Replies (1) | Respond to of 5499
 
They also took F down to 53 3/8 here after being in the 54's most of the day.

Jane



To: Esway who wrote (1782)4/13/2000 12:16:00 AM
From: jbe  Read Replies (2) | Respond to of 5499
 
hmm..EGRP? I am sorry to leap into this thread with what is going to look like criticism, but I can't resist. I came here looking for discussion of undervalued quality stocks, that is, stocks that are already profitable, not just potentially so, and that presumably are financially solid as well.

Do you really think EGRP fits the bill? It always struck me as being more of a typical internet company, than a proper & profitable brokerage firm. Humungous revenues, which are expected to lead to humungous earnings in the future -- but never seem to do so in the present (a la Amazon); a mind-boggling cash burn rate (can you believe EGRP has a price/cashflow ratio of MINUS 1137.5?!?), and so on. Didn't you define a 'quality company" as a company with real earnings? Certainly, a fraction of a cent on the plus side is infinitely better than the 16 cents on the minus side that analysts were expecting. But, that still does not amount to much in terms of "real earnings" at this point in time. If we are talking EPS, profit margins, return on equity, etc., not raw revenue, almost any other on-line (or off-line) broker outshines EGRP. Which, no doubt, is why companies like SCH, SWS, NDB, et al. have performed better price-wise than EGRP has.

But I'm willing to be contradicted. <g>