Re: [CANSLIM] UCBH

From: Chazmoore@aol.com
Subject: Re: [CANSLIM] UCBH
Date: Thu, 15 Aug 2002 17:47:41 EDT

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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

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<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>

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