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At 11:42 AM 7/8/98 -0700, Alberto Torchio wrote:
>Dear Listmembers,
>
>> Is there anyone using fundamental screening to spot possible stocks to
buy? Or
>> fundamental and technical?
>
>Thank you to oll tohse who have replied to my earlier message about
fundamental
>screening: I am new to this field so I consider all your inputs extremely
useful.
>
>I think I can summarize most of your messages as follows: there is a wide
consensus over
>the usefulness of future earnings growth and, as a whole, all those
indicators of a
>company's attitutde at producing returns.
>
>On the other hand I see little intereest for those indicators of a stock's
value: P/E
>price-to-book... Isn't there anything such as an undervalued company?
Perhaps at the
>late stages of a long lasting bull market there is little hope to find
such items,
>things might be different at the end of a bear market. But who is old
enough to remember
>what a bear market is? ;-)
>
>Alberto Torchio
> Torino, Italy
>
>
P/E is misleading by itself. I'd like to find the stock that has lower P/E
than
it has had historically (relative P/E). Many stocks are simply stuck in a low
P/E range, which means investors are and may continue to be skeptical about
the
stocks.
Besides relative P/E, I'd like to see very little news on the stock and few
or no
analysts following it, but value must be there, sales growth, earnings growth.
RE: bear market, it's been too long ago. I thought we were into one when
Louis
Rukeyser's elves posted a minus six score in May, 1987. I was out of the
market
by the end of September, and re-entering in December.
petena9090@xxxxxxxxxxxxxx
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