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


To: Terry Whitman who wrote (41201)11/22/2002 2:14:19 PM
From: pvz  Respond to of 52237
 
In less than 6 weeks the trailing earnings used by Martincapital will roll over to the next year. Wouldn't this raise trailing PE's and therefore diminish the attractiveness of stocks according to this model?

Edit: that's a stupid question on my part. 2002 earnings were greater than 2001 earnings, so trailing PE's will decline, if stock prices remain the same.



To: Terry Whitman who wrote (41201)11/22/2002 2:36:01 PM
From: Perspective  Read Replies (1) | Respond to of 52237
 
How in the world do stock earnings streams in any way approximate a 90 day paper yield?!? Government or commercial? Long term corporate bonds are the nearest proxy for future earnings stream valuation.

The guys who developed that POS model should get a clue. Besides, it doesn't work. Look at how many years it leaned the wrong way without resolving.

BC



To: Terry Whitman who wrote (41201)11/22/2002 3:16:57 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 52237
 
Using trailing earnings yields and 90 days bills is quite stupid IMHO. This model is "just to fit" moving into a recession trailing earnings are high and 90 days yield are low due to the recession.

So the model will prompt you to buy stocks exactly when you may need ot sell them