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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: TomNY who wrote (65715)	10/1/2000 4:18:07 PM
From: Jim Bishop	Read Replies (1) \| Respond to of 150070

: Stockscores <stockscores@HOME.COM> Subject: Stockscores.com Perspectives for Sept 29, 2000 To: STOCKSCORES@LIST.NEWSHOTLINE.COM Stockscores.com Perspectives For the week ending September 29, 2000 In this week’s issue: - Commentary: P/E Ratio Public Enemy #1? - Feature Strategy: Bargain Hunting - Tip of the Week: Plotting Multiple Stocks on Stockscores.com Charts. - How to subscribe to the Stockscores.com Perspectives Daily Edition *Stockscores.com Commentary* If you listen to enough stock analysts, chances are you will hear about the “P/E Ratio”. Many newspapers include this sophisticated sounding number in their stock quote pages, and more than a few books discuss the importance of understanding the indicator when conducting your stock analysis. The P/E stands for Price/Earnings; it is a ratio commonly used to assess the value of a stock. A stock that trades at $10 and makes a profit of $1 per share in a given year would have a P/E Ratio of 10. Groups of stocks will tend to trade around a common P/E Ratio depending upon their growth prospects. A biotechnology company that might double its revenues each year will trade at a much higher P/E Ratio than a steel stock that has little in the way of growth potential. Time and again, I have heard market experts tell their audience that they should find stocks with P/E Ratios that are low compared to historic levels, or relevant to their peer group. If the average P/E ratio for oil stocks is 20, and ABC Oil Corp is trading with a P/E ratio of 12, fans of the P/E ratio will argue that ABC Oil Corp is a great investment opportunity. In this way, the P/E ratio is a way to find bargains in the stock market. But there is a problem. It doesn’t work that way. The simple reason is that anyone can find out the P/E Ratio of a stock; it is in no way a secret. Since everyone knows about it, the usefulness of the indicator is priced in to the stock. If ABC Oil Corp has a P/E Ratio of 12, while the rest of oil stocks have a 20, it is because there is something else known about ABC OIL CORP that makes it worth less. The P/E Ratio is a waste of time, because it is a piece of public knowledge that will always be priced in to the stock. Impress your friends at parties with it, but don’t use it for investment decisions. There is a greater purpose to my revue of this indicator; I really want to drive home that using public information to make investment decisions will get you nowhere, simply because the information is already priced in to the market. Smart analysts who beat the market take public information and use it to extrapolate what will be public knowledge in the future. What matters is what future earnings will be, not what they are today. Enough Said. *Stockscores.com Feature Strategy * Too often we try to buy stocks that seem cheap, only to watch them get cheaper. Timing the turnaround is not easy, but a few steps will help you to minimize risk and buy cheap stocks early in the turnaround phase. When trying to time the turnaround, consider the following: We must first see a break from the downtrend. If you draw a line along the top of the downtrend of prices, a break from the downtrend will occur when the line is violated. A break in the downtrend is not enough for there is no show of stability or optimism. The next things that we want to look for are stocks that are making a short-term consolidation (a sign of stability) and a move to positive for the short term moving average (optimism). To scan for stocks that are doing this, set the Market Scan filters as follows: Candle = Bullish Long Term and Medium Term moving average = Bearish Short Term moving average = Bullish Short Term Consolidation = Yes $ Value Volume >= 1000000 (one million $) Williams Volume Accumulation = Bullish For my scan, I selected Exchange = Nasdaq so that I could focus on tech stocks. The scan revealed 13 potentials. Here are the ones that stand out: Memberworks (MBRS) NetRatings Inc. (NTRT) Looking for bargains? Try this strategy on a regular basis and it may make you happy. *Stockscores.com Site Tip of the Week* Want to compare the charts of more than one stock at once? You can plot a line chart of more than one stock by entering the symbols in a box with a comma separating them. For example, if you would like to display Microsoft vs. Intel, you would enter MSFT, INTC. For this to work, you cannot change the charting defaults. *Stockscores.com Perspective Daily Edition* Each day, we scan the market for opportunities and reveal only the best to our Daily Edition subscribers by email. Plus, we provide comments on past features with regular updates, helping you understand how to trade these features. A two-week free trial is available for new subscribers. To enroll, simply send a request to perspectives@stockscores.com. We will have you added within a week of your request. One-year subscriptions are available at the following rates: $100US $125CDN Checks can be sent, made out to Perspectives, to: Perspectives 1919B - 4th Street S.W. Suite 167 Calgary, AB T2S 1W4 *References* To get the Stockscore on any of over 20,000 North American stocks: stockscores.com For a background on the theories used by Stockscores: stockscores.com For strategies that can help you find new opportunities: stockscores.com To scan the market using extensive filter criteria: stockscores.com To build a portfolio of stocks and view a slide show of their charts: stockscores.com To see which sectors are leading the market, and the stock components: stockscores.com ***Change of Email Address or Removal from Email List Please go to the Registration area of the site, and utilize the Edit tool. Disclaimer __________ This is not an investment advisory, and should not be used to make investment decisions. Information in Stockscores Perspectives is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The writers and editors of Perspectives may have positions in the stocks discussed above and may trade in the stocks mentioned. Don't consider buying or selling any stock without conducting your own due diligence.