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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (11861)	1/16/2001 12:34:09 PM
From: TimbaBear	Read Replies (2) \| Respond to of 78618

Would someone please either give me the definition of "net net" or point out where it is in any of the books we mention here(I think I have them all), or provide the link where it is given? Thank you Timba

To: James Clarke who wrote (11861)	1/16/2001 1:38:26 PM
From: Q.	Read Replies (1) \| Respond to of 78618

James, I agree that homebuilders are cyclical, and that they up a lot from their lows. That's why I'm selling some. My use of p/e ratios was not intended to determine whether I should be in the sector, but rather for comparisons within the sector of which homebuilders are most richly valued. Ditto with using the growth rates: I think it's worth knowing that contrary to what one might expect, the stocks in the sector that have the highest p/e ratios also have the poorest earnings growth prospects, according to analysts. Contrary to your suggestion, I think this is a reasonable approach for what I'm doing: I'm not deciding whether to be in the sector, I'm choosing stocks within the sector to dump. In particular, I'm dumping the stocks with the highest p/e ratios and the poorest growth prospects, within the sector. Is that a bad idea?