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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: uu who wrote (25531)	8/20/2002 4:28:03 PM
From: MeDroogies	Respond to of 39683

What I would suggest is that you ditch PE as a measure. Just a helpful comment. When I worked for the CFO of a major media concern, he pointed out the shortcomings to me. He was also the primary investment manager for a large investor... That said, his point was PE is usually backward looking, sort've like driving via the rear view mirror. Even PEG is pretty bad, he pointed out, because the G portion (growth) is a guess. He suggested keeping your eye on cash flow, because that is what keeps a company running. When cash flow remains consistently negative, you have got serious problems coming. This, of course, is for investing purposes. For trading purposes, I think it's up to your particular likes/dislikes. I like TC's methodologies. They are pretty consistent.