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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (6654)	5/1/2001 1:10:55 PM
From: Paul Shread	Read Replies (1) \| Respond to of 52237

A quick look at their financials tells me they've probably gone about as far as they can go, AS. I agree on a cash, book value and price-to-sales basis, they look attractive. But they're trading at 25 times forward earnings, with a long-term projected growth rate of 20%. So they're already 20% overvalued using a basic PEG approach. Their ROE and margins are terrible; retailers have more leverage than that. A lot of stocks look like they've gone about as far as they can go without an improvement in the fundamentals/outlook, IMHO. But the market knows better than any of us, and a move above 1300 SPX, 11,000 Dow and 2300 COMPX would get my attention. One good sign for the bulls is that the PC ratio goes from .40 to .60 in a day on any pullback. A lot of itchy trigger fingers out there... One very good sign for the bears is that Al Goldman, Ralph Bloch, Hugh Johnson and Ralph Makempoorer have called bottoms. And I believe April fund inflows will come close to March's outflows, with at least half of it going to aggressive growth.