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.

Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: VBH who wrote (10872)	4/7/1998 1:05:00 AM
From: Mel Viticus	Read Replies (1) \| Respond to of 27968

The multiple found by dividing the current price per share by the earnings per share. Melviticus

To: VBH who wrote (10872)	4/7/1998 1:21:00 AM
From: Mark[ox5]	Respond to of 27968

PE Price divided by Earnings Is that what you need to know? Also, as an aside..many people use the PEG ratio (not in penny stocks but normal stocks) which is PE to Growth ratio.. which basically in english means your PE should equal the 3 to 5 year Growth rate (this measurement is favorered by Motley Fool I think) When I analyze "normal" (not OTCBB) stocks I try to use some form of PEG ratio (with lots of other factors thrown in).. so when I see a PE of 88 on a temp company I dont touch it....because to me that says their is an assumption of 88% 3-5 year growth rate for that company..which I doubt can be sustained. Then again industry leaders tend to get assigned much higher PE ratios then their peers. But that is the cautious way to play it, and to be truthful I made a ton of money on a stock with 150 PE last year LOL (YURI)! Then again, PE (or PEG) is one ratio out of 100 of 'em, and PE obviously doesnt matter for stocks who dont make money yet, or outfits like Yahoo or AOL where the PE's are thrown to the wayside, and basically companies are valued on revenue and/or potential. Hope that didnt serve to further confuse you. Mark