Barron's on TV Talking Heads (was Re: [CANSLIM] SYK)

From: Warren Keuffel <wkeuffel@xmission.com>
Subject: Barron's on TV Talking Heads (was Re: [CANSLIM] SYK)
Date: Wed, 20 Mar 2002 09:59:10 -0700

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Re: TV "bears"

This week's Barron's has a wonderful article by a freelancer who 
captured the almost total lack of negative news on CNBC. He finished the 
piece comparing CNBC to an infomercial, but with less integrity. A hoot 
and a half, highly recommended reading!

Warren

Duke Miller wrote:

> Charley,
>
>  
>
> The results of your study would be very interesting to the group, I'm 
> sure.
>
>  
>
> Duke
>
>     -----Original Message-----
>     From: owner-canslim@lists.xmission.com
>     [mailto:owner-canslim@lists.xmission.com] On Behalf Of
>     Chazmoore@aol.com
>     Sent: Wednesday, March 20, 2002 7:00 AM
>     To: canslim@lists.xmission.com
>     Subject: Re: [CANSLIM] SYK
>
>     Tom: A few months ago one of the TV "bears" commented that a stock
>     market recovery could not occur until the P/E ratio's fell
>     significantly. In other words, stock prices are too high, or
>     earnings too low. He noted that the S&P 500 Index P/E was (at the
>     time) 28. Since I don't trust the S&P 500 Index averages I started
>     to research the P/E ratio of Industry Groups, as defined by IBD. I
>     am far from complete but my initial findings indicate that, with
>     the exception of the technology sector, average P/E's really are
>     not that high. Credit card companies like Capital One Finance
>     (COF), and MBNA (KRB), have an average P/E of about 22; 8 points
>     below the current S/P Index average.
>     So, what is the point? I use this to determine if the stock P/E is
>     in line with it's own industry. It could also be used to determine
>     a target price to sell the stock in the future. While there are
>     notable exceptions, (CSCO, QCOM, JDSU), most stocks get downgraded
>     when they hit P/E ratios inconsistent with analyst projections,
>     and this causes a price decline.
>     (Maybe I have more time than sense.)
>
>     Charley
>
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