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Microcap & Penny Stocks : 1ST MIRACLE GROUP (MVEE), founders last co. went $0.20-$46 -- Ignore unavailable to you. Want to Upgrade?


To: bottomfish who wrote (1556)11/4/1998 9:21:00 AM
From: M.R. Davis  Respond to of 5541
 
No BARTON I did not say Price to Sales was a better indicator - I used Price to Sales as we have more idea of Sales than of Net Income....
Of course Earnings Per Share (EPS) is the better measure - the stock price really reflecting estimates of future EPS - expectations of revenue growth are what lead to high PEs - i.e. PEs higher than that Industry sector average.

Book Value is a very dangerous method of calculating the value of a stock. Look at PAMM - trading well below the Book Value published on Yahoo - but that Book Value was several months ago - it's most likely that the company has no cash left and the assets have been considerably devalued due to market conditions.
Be careful using Book Value.