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

To: Dave who wrote (15765)	11/10/2002 11:14:09 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78666

Dave: regarding: "ROE can be deceptive. One must evaluate ROE with respect to D/E". Yes, I should have mentioned that. Whenever I look at ROE I want to check d/e levels too. I've not been successful in quantifying the relationship between these two factors though to helpfully make a buy decision. That is, if I saw a consistent 18% ROE on a stock selling at book value or below, that would generally stimulate my interest. That's tempered if the d/e is 2:1, encouraging if .5/1. In between those ratios (where most stocks seem to lie) is a much more difficult area for me. Paul Senior