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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?


To: Spreck who wrote (17951)1/7/2001 12:17:18 AM
From: Venditâ„¢  Read Replies (1) | Respond to of 19374
 
Ask yourself and your trading partner (I remember who this is<g>) >>>>>>>>

If they know how a Price Earnings ratio is calculated.
In short you take the per share profit a company makes and then divide that into the closing price of a stock.

If you own MO for instance they not only have a low PE (a buy) PE= 11

askresearch.com

but they also pay a dividend equal to a annual 5% return.

dbc.com

Are they a good trading stock? NO

Are they a good long term investment? Yes

IMO



To: Spreck who wrote (17951)1/7/2001 12:34:12 AM
From: Venditâ„¢  Read Replies (1) | Respond to of 19374
 
Now let us look at another good company, QCOM.

Do they have a PE? yes = 86

askresearch.com

What is their dividend per share? = $0

dbc.com

Are they a good long term investment at this point and price? = NO

Are they a good trading stock? = YES

Why? simple = Volatility and technical predictability.