Author: zglobal

CHINA STOCKS TO CRASH?   [Copy link] 中文

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Post time 2012-5-25 09:09:06 |Display all floors
My take on this is that the PE is largely meaningless as far as genuine indicators go.

What is far more important to me is the cash-flow to value of company ratio and the size of its on sheet and off sheet liabilities versus cash flow That's where you really find out if a company is solvent or just floating along in a cloud of debt and stock market delusion.  Unfortunately this means spending quite a bit of time reading a businesses financial reports and so on.
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Post time 2012-5-25 14:31:12 |Display all floors
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Post time 2012-5-25 14:45:34 |Display all floors
This post was edited by Ratfink at 2012-5-25 15:03
LaughsatYou Post time: 2012-5-25 14:31
No, you must have never taken any kind of finance class ever. PE is at least 50% of stocks, it tell ...

In stock trading, the P/E ratio (price-to-earnings ratio) of a stock (also called its "P/E", or simply "multiple") is a measure of the price paid for a share relative to the annual Earnings per Share.

Now my understanding is that the P/E ratio can be qualified a number of ways, with each method giving a different value.
However as far as I'm concerned it's meaningless in real terms as it tells you nothing about a companies underlying financial health or viability, given that the stock market is the most lemming like creation in financial history.
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Post time 2012-5-25 15:00:23 |Display all floors
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Post time 2012-5-25 15:20:16 |Display all floors
LaughsatYou Post time: 2012-5-25 15:00
But the earnings is largely based on revenue and the amoun of revenue and the way it is collected  ...

Yes and... waits .... many companies have massive offsheet liabilities that are not factored in to the P/E ratio are they?
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Post time 2012-5-25 15:53:47 |Display all floors
zglobal Post time: 2012-5-25 08:35
One more issue here.

Apple has a PE of 13 right now.

True it is a very complicated matter and not easy to precis in a few words.

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Post time 2012-5-25 16:51:12 |Display all floors
The rupee is a best buy in my shopping list.
I will buy some gold too.

"The Indian rupee has continued its downward slide of the past few days and hit an all-time low against the dollar in early trade on Wednesday.
The Indian currency fell to 55.82 rupees against the US dollar, from 55.39 on Tuesday...."

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