[CANSLIM] Fw: Fw: markets nearing crucial stage artile-07-14-02

From: "zillagirl" <zillagirl@email.msn.com>
Subject: [CANSLIM] Fw: Fw: markets nearing crucial stage artile-07-14-02
Date: Thu, 1 Aug 2002 08:10:32 -0700

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this is the reply I received from the article in the L.A. Times =
regarding P/E ratio .  Any thoughts?
- ----- Original Message -----=20
From: Jeff Salisbury=20
To: zillagirl=20
Sent: Thursday, August 01, 2002 6:45 AM
Subject: Re: Fw: markets nearing crucial stage artile-07-14-02


Hello Nancy,=20
By all means, post the author's reply to the group.=20

Regards,=20

Jeff=20

zillagirl wrote:=20

  Jeff-there is a discrepancy in P/E values in an L.A. Times article of =
7-14. I wrote the author who has responded. I would like this to become =
available to the group for who ever would be interested. I am not sure =
if I am following your instructions properly. If not can you help me-If =
yes I will wait to hear from you so I can let them know it is available. =
 thank you Nancy=20
  ----- Original Message -----=20
  From: Petruno, Tom
  To: 'zillagirl'Sent: Wednesday, July 31, 2002 10:01 PMSubject: RE: =
markets nearing crucial stage artile-07-14-02
              Hello Nancy. Sorry for the delay -- I set your message =
aside, meaning to answer, but the market action got in the way.         =
The short answer is, all of these numbers are "correct."  It depends on =
how you define earnings.        S&P P/Es listed in the upper 30s =
generally are figured on earnings per share over the last four quarters, =
INCLUDING one-time charges.        S&P P/Es listed in the upper teens =
generally are figured on ESTIMATED earnings for calendar 2002, and are =
for "operating" results -- that is, EXCLUDING one-time charges.        =
Which is the fairer P/E?  Again, that depends on your definition of =
earnings. People who use operating earnings say that's fairer because =
operating results measure  earnings from ongoing operations. But of =
course it's fair to ask today whether many "one-time" charges listed by =
companies really are recurring charges. The market bears use that =
argument, and say P/Es should be figured on net earnings.        I'm =
forwarding by separate email a report from S&P that shows their current =
estimates of operating P/Es by market sector.        Thanks for writing. =
       Tom Petruno   =20
    -----Original Message-----=20
    From: zillagirl [mailto:zillagirl@email.msn.com]=20
    Sent: Monday, July 15, 2002 4:49 PM=20
    To: Tom.Petruno@latimes.com=20
    Subject: markets nearing crucial stage artile-07-14-02=20
    =20
    In your article last Sunday, in the second to last column on page =
A33(second paragraph), you stated that the average stock in the S & P =
500 is priced at about 19 times this years expected earnings per share. =
That is far above the historical average price to earnings ratio of =
about 14.         On the web site www.dicisionpoint.com it states today =
that the PE for the S&P 500 is at 39.60 as of 7-12-02.  Also at site =
www.spglobal.com/earnings.html  It said last Friday that the PE of the =
S&P was at 37.31. (this is the S&P website)  I belong to an investment =
chat and we are all wondering how you arrived at your figures and why =
this discrepancy (which is quite wide) exists.  If your figure is wrong =
it is very misleading to tell all of you subscribers the PE ratio is 1/2 =
of what it really is.  It makes the market look in a lot better shape =
then it really is.  Can you resolve this for us.. Thank you Nancy =
Polcaro-we will wait for your response.

 =20
 =20

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<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial size=3D2>this is the reply I received from the =
article in=20
the L.A. Times regarding P/E ratio .&nbsp; Any thoughts?</FONT></DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
title=3DJeff.Salisbury@WallStreet-LLC.com=20
href=3D"mailto:Jeff.Salisbury@WallStreet-LLC.com">Jeff Salisbury</A> =
</DIV>
<DIV><B>To:</B> <A title=3Dzillagirl@email.msn.com=20
href=3D"mailto:zillagirl@email.msn.com">zillagirl</A> </DIV>
<DIV><B>Sent:</B> Thursday, August 01, 2002 6:45 AM</DIV>
<DIV><B>Subject:</B> Re: Fw: markets nearing crucial stage=20
artile-07-14-02</DIV></DIV>
<DIV><BR></DIV>Hello Nancy,=20
<P>By all means, post the author's reply to the group.=20
<P>Regards,=20
<P>Jeff=20
<P>zillagirl wrote:=20
<BLOCKQUOTE TYPE=3D"CITE">
  <STYLE></STYLE>
  <FONT face=3DArial><FONT size=3D-1>Jeff-there is a discrepancy in P/E =
values in an=20
  L.A. Times article of 7-14. I wrote the author who has responded. I =
would like=20
  this to become available to the group for who ever would be =
interested. I am=20
  not sure if I am following your instructions properly. If not can you =
help=20
  me-If yes I will wait to hear from you so I can let them know it is=20
  available.&nbsp; thank you Nancy</FONT></FONT>=20
  <DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
  <DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
  title=3DTom.Petruno@latimes.com =
href=3D"mailto:Tom.Petruno@latimes.com">Petruno,=20
  Tom</A></DIV><B>To:</B> <A title=3Dzillagirl@email.msn.com=20
  href=3D"mailto:zillagirl@email.msn.com">'zillagirl'</A><B>Sent:</B> =
Wednesday,=20
  July 31, 2002 10:01 PM<B>Subject:</B> RE: markets nearing crucial =
stage=20
  artile-07-14-02</DIV>&nbsp;&nbsp;&nbsp;&nbsp;<SPAN=20
  class=3D203345004-01082002><FONT face=3DArial><FONT =
color=3D#0000ff><FONT=20
  size=3D-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hello Nancy. =
Sorry for the=20
  delay -- I set your message aside, meaning to answer, but the market =
action=20
  got in the way.&nbsp;</FONT></FONT></FONT></SPAN><SPAN=20
  class=3D203345004-01082002></SPAN><SPAN =
class=3D203345004-01082002><FONT=20
  face=3DArial><FONT color=3D#0000ff><FONT=20
  size=3D-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The short answer =
is, all of=20
  these numbers are "correct."&nbsp; It depends on how you define=20
  earnings.</FONT></FONT></FONT></SPAN><SPAN=20
  class=3D203345004-01082002></SPAN><SPAN =
class=3D203345004-01082002><FONT=20
  face=3DArial><FONT color=3D#0000ff><FONT=20
  size=3D-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&amp;P P/Es =
listed in the=20
  upper 30s generally are figured on earnings per share over the last =
four=20
  quarters, INCLUDING one-time charges.</FONT></FONT></FONT></SPAN><SPAN =

  class=3D203345004-01082002></SPAN><SPAN =
class=3D203345004-01082002><FONT=20
  face=3DArial><FONT color=3D#0000ff><FONT=20
  size=3D-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&amp;P P/Es =
listed in the=20
  upper teens generally are figured on ESTIMATED earnings for calendar =
2002, and=20
  are for "operating" results -- that is, EXCLUDING one-time=20
  charges.</FONT></FONT></FONT></SPAN><SPAN=20
  class=3D203345004-01082002></SPAN><SPAN =
class=3D203345004-01082002></SPAN><SPAN=20
  class=3D203345004-01082002><FONT face=3DArial><FONT =
color=3D#0000ff><FONT=20
  size=3D-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Which is the =
fairer=20
  P/E?&nbsp; Again, that depends on your definition of earnings. People =
who use=20
  operating earnings say that's fairer because operating results =
measure&nbsp;=20
  earnings from ongoing operations. But of course it's fair to ask today =
whether=20
  many "one-time" charges listed by companies really are recurring =
charges. The=20
  market bears use that argument, and say P/Es should be figured on net=20
  earnings.</FONT></FONT></FONT></SPAN><SPAN=20
  class=3D203345004-01082002></SPAN><SPAN =
class=3D203345004-01082002><FONT=20
  face=3DArial><FONT color=3D#0000ff><FONT=20
  size=3D-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I'm forwarding by =
separate=20
  email a report from S&amp;P that shows their current estimates of =
operating=20
  P/Es by market sector.</FONT></FONT></FONT></SPAN><SPAN=20
  class=3D203345004-01082002></SPAN><SPAN =
class=3D203345004-01082002></SPAN><SPAN=20
  class=3D203345004-01082002><FONT face=3DArial><FONT =
color=3D#0000ff><FONT=20
  size=3D-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Thanks for=20
  writing.</FONT></FONT></FONT></SPAN><SPAN=20
  class=3D203345004-01082002></SPAN><SPAN =
class=3D203345004-01082002><FONT=20
  face=3DArial><FONT color=3D#0000ff><FONT=20
  size=3D-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tom=20
  Petruno&nbsp;</FONT></FONT></FONT></SPAN><SPAN=20
  class=3D203345004-01082002></SPAN><SPAN=20
  class=3D203345004-01082002></SPAN>&nbsp;&nbsp;=20
  <BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
    <DIV class=3DOutlookMessageHeader dir=3Dltr><FONT =
face=3DTahoma><FONT=20
    size=3D-1>-----Original Message-----</FONT></FONT> <BR><FONT =
face=3DTahoma><FONT=20
    size=3D-1><B>From:</B> zillagirl [<A=20
    =
href=3D"mailto:zillagirl@email.msn.com">mailto:zillagirl@email.msn.com</A=
>]</FONT></FONT>=20
    <BR><FONT face=3DTahoma><FONT size=3D-1><B>Sent:</B> Monday, July =
15, 2002 4:49=20
    PM</FONT></FONT> <BR><FONT face=3DTahoma><FONT size=3D-1><B>To:</B>=20
    Tom.Petruno@latimes.com</FONT></FONT> <BR><FONT face=3DTahoma><FONT=20
    size=3D-1><B>Subject:</B> markets nearing crucial stage=20
    artile-07-14-02</FONT></FONT> <BR>&nbsp;</DIV><FONT =
face=3DArial><FONT=20
    size=3D-1>In your article last Sunday, in the second to last column =
on page=20
    A33(second paragraph), you stated that the average stock in the S =
&amp; P=20
    500 is priced at about 19 times this years expected earnings per =
share. That=20
    is far above the historical average price to earnings ratio of about =

    14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On the web site =
<A=20
    href=3D"http://www.dicisionpoint.com">www.dicisionpoint.com</A> it =
states=20
    today that the PE for the S&amp;P 500 is at 39.60 as of =
7-12-02.&nbsp; Also=20
    at site <A=20
    =
href=3D"http://www.spglobal.com/earnings.html">www.spglobal.com/earnings.=
html</A>&nbsp;=20
    It said last Friday that the PE of the S&amp;P was at 37.31. (this =
is the=20
    S&amp;P website)&nbsp; I belong to an investment chat and we are all =

    wondering how you arrived at your figures and why this discrepancy =
(which is=20
    quite wide) exists.&nbsp; If your figure is wrong it is very =
misleading to=20
    tell all of you subscribers the PE ratio is 1/2 of what it really =
is.&nbsp;=20
    It makes the market look in a lot better shape then it really =
is.&nbsp; Can=20
    you resolve this for us.. Thank you Nancy Polcaro-we will wait for =
your=20
    response.</FONT></FONT></BLOCKQUOTE></BLOCKQUOTE><BR>&nbsp; =
<BR>&nbsp;=20
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