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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: DavidCG who wrote (41162)	12/28/1998 3:13:00 PM
From: Knighty Tin	Respond to of 132070

David, Cyclical stocks should have low pe ratios at the top of cycles. For example, in the highly cyclical, high risk brokerage business, Bear Stearns, a much better known name, sells for 10 times eps. So, the brokerage firm's ratio looks cheap, but not dirt cheap. On the other hand, cyclical stocks at the bottom of their cycles are supposed to sell at high pe ratios. I would consider a great co. like Helmerich and Payne at 9 times eps at the bottom of the energy cycle to be a huge bargain. MB