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Strategies & Market Trends : TA-Quotes Plus -- Ignore unavailable to you. Want to Upgrade?


To: Rashid Garuba who wrote (3667)3/19/1998 6:10:00 PM
From: gonzongo  Read Replies (1) | Respond to of 11149
 
Can you give me an example of how a PE screen has helped you pick winning stocks. Do you have a long time frame of investing?

Generally PE seems useful in finding a stock in the same sector which is undervalued- but you must do a full financial review to determine if there are no hidden issues.
In a long time frame - sectors with low PE's generally move back to the average. High PE's generally reflect expectations of future growth as in Yahoo- AOL - AMZN which all have made tons of money for their "investors"

P/E and P/S are astronomical and they may come back to earth someday but I would guess your TA will tell you when to sell.

No?

g