Forum Archive Index - May 2003

["Chris Watson" <Chris.Watson@computerland.co.nz>]

Earnings have been downgraded about 21% (from broker average of $95m to around $75m).  Therefore to retain its (relatively high) PE ratio, the share price needs to fall 21%.  Future earnings are the most important factor in determining fair value, so what why are you so surprised with today's price collapse? 

 

If the price falls further over the next few days, and in doing so drags the PE lower, then and only then does the stock get cheap...not because it was trading higher yesterday...but because its earnings-related future returns get more attractive.

-----Original Message-----
From: Duncan MacGregor [mailto:d-m_macgregor@xtra.co.nz]
Sent: Friday, 2 May 2003 2:26 p.m.
To: sharechat
Subject: [sharechat] WHS and the big boys in oz

Last year I posted that the fastest way for me to exit a share was for the company to start up in oz.  The BEAR has gone mad almost as stupid as when the BULL takes over.  Down about 25pc in one morning, even I find that unbelievable. POISIDEN was the silliest share in a bull market peaked at $235 and back to a few dollars in one year.  The warehouse is in the running for my silliest share in a bear market.  I am totally convinced mr market is a complete fool which makes it very interesting for any investor with half a brain.
            CHEERS MACDUNK

          OTHER SUBJECT my name didnt crop up on the most beatifull list thought you would like to know that
 

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