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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (83)	3/17/1998 9:10:00 PM
From: Freedom Fighter	Respond to of 1722

Abby Cohen sees stock prices rising every year for all time. When they overshoot her current estimate (which they have done every year for the last 3 by a large margin), she just raises it again. It's called Perma Bull. It's the opposite of Mega Bear and not to be taken seriously by VALUE investors.

To: porcupine --''''> who wrote (83)	3/17/1998 10:26:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 1722

Cohen Sees Stocks Rising I noticed Abby's operating earnings estimate for 1998 and her operating earnings report for 1997. I found them quite curious. As of 3/11/98 First Call says the S&P500 had operating earnings of 44.95. vs. what Abby said 46.81. With several companies still to report, the S&P range of estimates by First Call is 44.13 - 45.30. This reminds me of the Arsenio Hall show bit called "things that make you say hmmmm!" Just as a reminder, at the start of 97, Abby's model called for Dow 7050 and S&P 800 (approximately) and operating earnings of 47 on the S&P500. With the S&P operating earnings clearly below her estimate and the S&P at 1080 her model is still flashing great value. "things that make you say hmmmmm!" Granted rates have fallen from approximately 6.4 % since then and there would be some adjustment, but this is quite a difference. Current operating estimates by First Call for 1998 are 47.61. This was approximately Abby's estimate for 97 which never happen. Abbey's estimate for 1998 is 50.5. "Things that make to say hmmmmm". Just a reminder, the reported earnings for the S&P came in below 40 for 1997 as of the last published report. Reported earnings are a little closer to what companies are actually making, though they are also overstated due to stock option compensation not being expensed.