Go to Jeff Salisbury LWGate Home Page.From: Chazmoore@aol.com
Subject: Re: [CANSLIM] UCBH
Date: Thu, 15 Aug 2002 17:47:41 EDT
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- --part1_138.12f620ef.2a8d7b7d_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Nancy: The Price Earnings Ratio is simply the stock price divided by the earnings. Therefore, if you know P/E ratio, and the Earnings, you can multiply and determine the price. From DGO we note the estimated earnings for 2003 to be $2.25 per share. The current P/E is 25. Therefore 25 X 2.25 = $56.25, the estimated price of the stock at the end of fiscal year 2003. Also from DGO we note the 5 year range of the P/E has been 5 to 24 so we can conclude the P/E is at a 5 year high, and historically, has not exceeded that amount. As you can see the $56 is just an educated guess based on available information. There is no rule which says the P/E cannot go to 50, and there is no rule that says earnings cannot double the estimate. However, if you want a ball park figure this is not bad. Charley - --part1_138.12f620ef.2a8d7b7d_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit <HTML><FONT FACE=arial,helvetica><FONT SIZE=2>Nancy: The Price Earnings Ratio is simply the stock price divided by the earnings. Therefore, if you know P/E ratio, and the Earnings, you can multiply and determine the price. <BR> <BR>From DGO we note the estimated earnings for 2003 to be $2.25 per share. <BR>The current P/E is 25. <BR>Therefore 25 X 2.25 = $56.25, the estimated price of the stock at the end of fiscal year 2003. <BR>Also from DGO we note the 5 year range of the P/E has been 5 to 24 so we can conclude the P/E is at a 5 year high, and historically, has not exceeded that amount. <BR> <BR>As you can see the $56 is just an educated guess based on available information. There is no rule which says the P/E cannot go to 50, and there is no rule that says earnings cannot double the estimate. However, if you want a ball park figure this is not bad. <BR> <BR>Charley</FONT></HTML> - --part1_138.12f620ef.2a8d7b7d_boundary-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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