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Gold/Mining/Energy : Position Trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: Ward Nicholson who wrote (2203)	1/15/2001 10:42:13 PM
From: VisionsOfSugarplums	Respond to of 2259

Good point, Ward. Not very many analysts are willing to take a lead in setting multiples. They let the market set the multiples and then they set their price targets accordingly. [The multiple a particular stock has only contains information in how it compares to its peers - ie/ do they like it more or less that its competitors?]. Unfortunately, this makes analysts a lagging indicator when it comes to pricing and targets (and so often for basic analysis) which poses obvious risks, esp. during a trend change - because once multiples have contracted, I don't really need an analyst to tell me this. And most analysts won't know where the multiple contraction ends or changes until has already changed. In this environment of historically high PE and PGE multiples, anybody who doesn't understand that analysts rarely lead the market in setting multiples, is opening themselves up to a lot of price risk. It sounded to me like the Mr. Blackstein in the article was just talking up his guys. Regards, t.