Forum Archive Index - November 2001

[redredwine <redredwine@paradise.net.nz>]

Can someone please nutshell for me the inter-relationships between eps, pe, 
div/share and yield?

I need to know when to hold 'em and when to fold 'em.
It all looks alittle confusing, even after having read some books.  If I 
plan to hold long and go for income, yield is what I need along with 
div/share, right?  If I plan to trade I'll be looking for a high eps 
regardless of all the rest, right?  'cause I dunno.  And I know that p/e is 
very important and it should be low to start with but gets re reated by the 
market as the company [and its profits] improve, but what relevance does it 
have to the other 3 factors and time frames.  I understand that it depends 
on what kind of investor I am and how long I expect to hold a stock, but I 
need alittle knowledge here in order to determine those things for myself. 
 I would like to pick up some good long term income earners, but don't know 
how to assess them.

eg:

                eps     p/e     div/share       yield % recent price

LNN             21      25      19.4            3.6     550
HLG             19.6    14      27.6            9.9     285
DBG             99      5.5     41              7.7     540
FAP             21      66      56              3.9     1440
THL             14      8       13              11.5    117
RBD             9.1     20      14.9            8.2     181
TEL             36.4    12.3    29.8            6.6     450
TLS             71      8.3     23.1            3.9     593

How to determine the long term 'income producing assets' and the short term 
capital growth generators.  And if I am to 'buy on fundamentals and trade 
on technicals', I need a better handle on the fundies.

Thanks
        Ross   [held some, not others]


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