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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (4028)	3/21/1999 6:52:00 PM
From: Greg Jung	Respond to of 15132

This must be the sunday post, Glassman bottom fishing edition. Remember this guy has to come up with a different method every week. The screening he did looks to be one of the lamest - in this market, more likely a good list to avoid. (In fact, SLB is up more than 30% from its recent low and fundies of the biz aren't any better at $15/bb than they were at $11.) They started by asking their computer to find stocks in the S&P 500 with a market cap greater than $5 billion that were down more than 10 percent from their 12-month peaks and that were not in one of the four top-performing sectors (communications equipment and services, technology, consumer cyclicals, and health care). Only 34 of the 500 stocks passed those screens. Then they selected only stocks that were at least 20 percent below their average long-term P/E and price-to-sales ratios. That left just 10 stocks--from six different sectors. Buying historically low PEs is a blind way of finding companies entering into an earnings draught.