Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Spekulatius who wrote (48849)	7/20/2012 2:02:59 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78748

JCI. Yes, p/e looks high to me also. JCI though seems to me to be one of those companies that trades in its own p/e range year-after-year -- a range that's different and higher from its peers. I've been looking -- unsuccessfully -- to show that therefore the p/e will revert to a "normal" p/e that it's had in the past. Because JCI business is cyclical (earnings drop makes p/e higher), I can't justify it historically. It's a significant item for me though, because if earnings do fall, it'll be the corresponding stock fall that's ultimately important, not that the p/e reverts. And with JCI, I ask myself also, okay this company has a lot of followers on Wall Street, and a lot of good history (historical performance) behind it, but given that the p/e seems to me to stay relatively high (compared to auto supplier peer stocks, e.g. perhaps TRW) just how long can this company keep its p/e so much higher than these others? Anyway, just small tracking position for me here.