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Biotech / Medical : The Stock for 1999(Polymedica)PLMD(Medical Supply Co.) -- Ignore unavailable to you. Want to Upgrade?

To: Harold V who wrote (2623)	5/21/1999 6:56:00 PM
From: Abuckatatime	Read Replies (1) \| Respond to of 3414

Harold, Depressing it is. Citing Morningstar data, the article contrasts the estimated '99 P/E's of large caps vs. small caps - 33 vs. 17. PLMD's is now just over 10, indicating an undervaluation and leaving plenty of room for expansion of that multiple toward the mean. On the other hand, an article in yesterday's IBD makes the argument that value investing, buying low P/E stocks, does not guarantee success. "If your goal is to trounce the market averages by buying quality stocks with the best chance to double, triple or run up even more, a low P-E probably will be a hindrance." Throw Graham and Dodd out the window? On the other other hand, IBD found a stock's P/E ratio to be less important than a company's history of consistent quarterly and annual earnings growth. If this be true then PLMD shareholders should eventually recoup their losses and perhaps even make a few percent on their investment as earnings growth has been consistent and superb.