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Guy,
Actually, the PE on twelve month trailing earnings is only 298.78 <G>.
Seriously, PEs can be very deceiving and that's why I don't place much
emphasis on them. Instead I use Revenue growth and Price to Sales Ratios
(PSRs) as part of my fundamental search criteria. BBY's revenue growth last
year was over 40%. BBY's PSR is an extremely low 0.07. PSRs aren't effected
by the large swings you can get in PEs when you have write offs (Like BBY's
$15M inventory write down), adjustments, etc. With the good revenue growth
and low PSR, BBY could produce huge earnings growth by bringing just a small
per centage of sales to the bottom line. Now if they would just get busy and
do it <G>.
I know what you mean by "knowing too much about a business". While my
initial searches stress fundamentals, my final decisions are always based on
the charts.
Jim
-----Original Message-----
From: Guy Gordon
Sent: Wednesday, April 30, 1997 5:48 PM
To: MetaStock-List@xxxxxxxxxxxxx
Subject: Re: ASND
I'll admit that BBY (Best Buys) is on a slight uptrend, but is the PE
*really* 331? Wheeew!
I've made money on other retailers. PSUN and PAUH have been
favorites. I currently have a position in TUES. I channel trade
these. It seems to help that I have absolutely no interest in what
they sell. Sometimes you can know *too much* about a business.
(I *know* they have a *great product*! How can the &%$# stock go
DOWN?)
On Wed, 30 Apr 97 21:16:21 UT, you wrote:
>Guy,
> Thanks for the list of breakouts. Actually, when I jump into CSCO=
=20
>tomorrow, I'll be maxed out until I close a position. It's time to sit =
and=20
>hopefully watch the market move up <G>. I now have positions in ASND, =
BSC,=20
>COMS, IOM, JAWWX, OH, and LEAPS on BBY and MU. =20
> I think ASND will blow right through the 50 resistance to fill the =
March=20
>gap down. If I was forced to make a real short term target, I'd go with=
55. =20
>However, I'm holding out for 80 <G>.
>Jim
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