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waltjocketty
Joined: 09 Oct 2006
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 Posted: Mon Jun 04, 2007 6:42 pm Post subject: |
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waltjocketty
Joined: 09 Oct 2006
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| Posted: Mon Jun 04, 2007 6:44 pm Post subject: |
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| 4 months left wrote: |
In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story by itself. It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company's own historical P/E. It would not be useful for investors using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has much different growth prospects.
The P/E is sometimes referred to as the "multiple", because it shows how much investors are willing to pay per dollar of earnings. If a company were currently trading at a multiple (P/E) of 20, the interpretation is that an investor is willing to pay $20 for $1 of current earnings.
It is important that investors note an important problem that arises with the P/E measure, and to avoid basing a decision on this measure alone. The denominator (earnings) is based on an accounting measure of earnings that is susceptible to forms of manipulation, making the quality of the P/E only as good as the quality of the underlying earnings number.
http://www.investopedia.com/terms/p/price-earningsratio.asp |
I'm glad you're doing your research, but this is precisely what I said before: you are betting that the company is gonna make $200 for every $1 it makes now. I also said I don't only invest based on PE, but when it's as high as 200 you need to be careful. |
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4 months left
Joined: 07 Feb 2003
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| Posted: Mon Jun 04, 2007 6:51 pm Post subject: |
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Stock Market Myths
1. You can tell if a Stock is cheap or expensive by the Price to Earnings Ratio.
False: PE ratios are easy to calculate, that is why they are listed in newspapers etc. But you cannot compare PE�s on companies from different industries, as the variables those companies and industries have are different. Even comparing within an industry, PE�s don�t tell you about many financial fundamentals and nothing about a stock�s value.
http://www.divorcekit.com/Stock/Stock__Market_Myths.html |
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waltjocketty
Joined: 09 Oct 2006
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| Posted: Mon Jun 04, 2007 7:09 pm Post subject: |
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| 4 months left wrote: |
Stock Market Myths
1. You can tell if a Stock is cheap or expensive by the Price to Earnings Ratio.
False: PE ratios are easy to calculate, that is why they are listed in newspapers etc. But you cannot compare PE�s on companies from different industries, as the variables those companies and industries have are different. Even comparing within an industry, PE�s don�t tell you about many financial fundamentals and nothing about a stock�s value.
http://www.divorcekit.com/Stock/Stock__Market_Myths.html |
This is my last post on the subject, but the quoted post above is not saying what I am saying. I just said be very careful because the stock you are talking about is selling at 200 times earnings, and if you look at the history of the stock market, if you look at the tech bubble burst in 2000, you will see that the stocks that imploded all had tremendously high PEs. A high PE indicates that the company has not made much profit, but people are betting on the fact that the company can turn a huge profit. Usually they don't, and the company plummets and you can't sell your shares. I was just trying to warn you, but hey it's your money and I hope you make millions. |
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4 months left
Joined: 07 Feb 2003
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| Posted: Mon Jun 04, 2007 7:23 pm Post subject: |
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The difference is in the tech bubble, the companies had no earnings. NTRZ has 60 million in the bank (on the balance sheet 15 but someone quoted 60 on the message board) and no debt.
Don't you think it is worth the effort to investigate the company? The Beaver mentioned it and I researched and realize this has huge potential. Is it guaranteed? Absolutely not. Does it have the potential to double, triple or more? Absolutely.
You can conservatively invest in low PE co's and make 10% a year, my investing style is that I am looking minimum for 30% and companies that can double or more. Companies with strong growth have high PEs. Mcdonalds, Starbucks, Wal Mart all started small. You have to look at potential growth. Ignoring a stock because it has a high PE is just crazy in my opinion but then again I have a high risk tolerance. |
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4 months left
Joined: 07 Feb 2003
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| Posted: Mon Jun 04, 2007 8:49 pm Post subject: |
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Waltjockety, not trying to be argumentative here, just would like your opinion and maybe you see something I don't and I would appreciate another view.
Total Revenue PERIOD ENDING 31-Dec-06 18,090 31-Dec-05 5,564 31-Dec-04 1,224
EPS 2006 0.01, 2007 projected EPS 0.10, 2008 0.20
Sales 2006 4.17 million 2008 94.2
52 week change in stock price + 288.89%
Not to mention a patended technology on the healthies part of rice that is thrown in the garbage. A cheap way to help world hunger, a cheap healthy food additive when the cost of so many other additives are increasing. And also a feed for animals.
Just wondering what I am missing? |
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waltjocketty
Joined: 09 Oct 2006
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| Posted: Wed Oct 17, 2007 5:23 am Post subject: |
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| If you're still interested in NTRZ and haven't bought yet it looks like it should take off pretty soon. They've acquired much more warehouse space and a larger market with the acquisition of Vital Living. Also it looks like they've launched a few products (but who knows how they taste?) We'll just have to see how the earnings work out in a couple weeks, but it really could be developing into something pretty soon. It looks like it's safe to get in around $1.60, but maybe it'll dip back to $1.40 when earnings are released. |
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the_beaver
Joined: 15 Jan 2003
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| Posted: Wed Oct 17, 2007 5:37 am Post subject: |
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| waltjocketty wrote: |
| If you're still interested in NTRZ and haven't bought yet it looks like it should take off pretty soon. They've acquired much more warehouse space and a larger market with the acquisition of Vital Living. Also it looks like they've launched a few products (but who knows how they taste?) We'll just have to see how the earnings work out in a couple weeks, but it really could be developing into something pretty soon. It looks like it's safe to get in around $1.60, but maybe it'll dip back to $1.40 when earnings are released. |
I'm hoping NTRZ reports a bad quarter this month so the price drops and I can get some more. |
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4 months left
Joined: 07 Feb 2003
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| Posted: Wed Oct 17, 2007 12:50 pm Post subject: |
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I'm glad you guys are postitive on it because I'm taking a bath on it. Seems like there is potential but management is not executing. Recently recommended on a video from the Yahoo message board but I can't get it to play.
If you don't mind political risk, take a look at ARU (Toronto)...largest gold find in 20 years but in Ecuador. Has had a bit of a run lately. |
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huffdaddy
Joined: 25 Nov 2005
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| Posted: Wed Oct 17, 2007 3:18 pm Post subject: |
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| the_beaver wrote: |
| waltjocketty wrote: |
| If you're still interested in NTRZ and haven't bought yet it looks like it should take off pretty soon. They've acquired much more warehouse space and a larger market with the acquisition of Vital Living. Also it looks like they've launched a few products (but who knows how they taste?) We'll just have to see how the earnings work out in a couple weeks, but it really could be developing into something pretty soon. It looks like it's safe to get in around $1.60, but maybe it'll dip back to $1.40 when earnings are released. |
I'm hoping NTRZ reports a bad quarter this month so the price drops and I can get some more. |
Wait. Wasn't it trading at over 3 back in April? And hit 5 in May? And now it's at 1.66. Looks like a classic pump and dump chart. |
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the_beaver
Joined: 15 Jan 2003
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| Posted: Wed Oct 17, 2007 3:23 pm Post subject: |
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| huffdaddy wrote: |
| the_beaver wrote: |
| waltjocketty wrote: |
| If you're still interested in NTRZ and haven't bought yet it looks like it should take off pretty soon. They've acquired much more warehouse space and a larger market with the acquisition of Vital Living. Also it looks like they've launched a few products (but who knows how they taste?) We'll just have to see how the earnings work out in a couple weeks, but it really could be developing into something pretty soon. It looks like it's safe to get in around $1.60, but maybe it'll dip back to $1.40 when earnings are released. |
I'm hoping NTRZ reports a bad quarter this month so the price drops and I can get some more. |
Wait. Wasn't it trading at over 3 back in April? And hit 5 in May? And now it's at 1.66. Looks like a classic pump and dump chart. |
Yeah. It was overpriced. Possibly pumped and dumped. Management has badly done (or rather, not done) a few things.
I'm a long-term player and, barring anything catastrophic happening, I'm looking several years down the road. |
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4 months left
Joined: 07 Feb 2003
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| Posted: Wed Oct 17, 2007 3:38 pm Post subject: |
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| Any other not well known stocks you like?? |
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the_beaver
Joined: 15 Jan 2003
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| Posted: Wed Oct 17, 2007 4:13 pm Post subject: |
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| 4 months left wrote: |
| Any other not well known stocks you like?? |
Yeah, but I'm not too sure if the prices are low enough.
I started looking at SDA when it was in the high 40s a little while ago, and now it's in the mid-60s and still going.
LNDC I started looking at under 10, and now it's closer to 15.
I think both stocks look good for the long term. SDA seems a safer bet while LNDC seems to have more potential upside. I'm just suffering from a mental block because I didn't buy them when they were lower but I should give my head a shake and look at them again. |
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4 months left
Joined: 07 Feb 2003
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| Posted: Wed Oct 17, 2007 4:31 pm Post subject: |
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Son of a biatch, I owned SDA in the mid 20s and got tired of it doing nothing.
I still like cobalt, FCO.to GMC.v but you have to be in for the long term. I still think uranium stocks are so cheap, some not all...but again you need to be in for the long run. |
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waltjocketty
Joined: 09 Oct 2006
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| Posted: Wed Oct 17, 2007 7:50 pm Post subject: |
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| It wasn't a pump and dump. People just got scared over the purchase of Vital Living, accusing NTRZ of overpaying. People aren't satisfied with management, but it appears that the Vital Living purchase wasn't such a bad deal, after all. We'll just have to wait and see. |
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