Forum Archive Index - March 2003

["winner69 ." <wwinner69@hotmail.com>]

Bill

While you are thinking about a Fair Value Line bear in mind that the long 
term trend line on Phaedrus's chart is going up at about 25% per year.

Problem is that WHS earnings per share have only been growing at about 16% 
per year - and possibly slowing down.

You normally expect share price growth over time to mirror earnings growth - 
only moving away from this if market sentiment changes and the price 
earnings ratio changes.

Thinking this way would imply the long term trend line shown is too steep 
(if fair vakue was to be reflected) and the WHS shareprice has got way ahead 
of itself  - but then it all depends on the starting point etc,

Bill -have you looked at the stuff Snoopy et al have put on the Message 
Board re WHS? The conclusions there to some extent support the above.

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