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To: Oak Tree who wrote (67281)5/29/2000 3:35:00 PM
From: jbe  Read Replies (1) | Respond to of 95453
 
In my view, it is KP that is undervalued, not EEX. KP has actually been making a profit, with per-share earnings of 85 cents, but has a p/e of only 17.85. EEX is not making a profit currently, andhasn't made one for at least the past five years; earnings per share are negative -- minus $1.75 -- and hence it also has a negative p/e.

Just how do you value a company that is not profitable? And how can you call it undervalued?

EDIT:

P,S. You might be interested in the grades Morningstar gives to these two stocks. Illuminating, IMO.

quicktake.morningstar.com

quicktake.morningstar.com