Go to Jeff Salisbury LWGate Home Page.From: "NANCY POLCARO" <ZILLAGIRL@msn.com>
Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes)
Date: Thu, 27 Mar 2003 10:54:03 -0800
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- ------=_NextPart_001_0000_01C2F44F.2DEE9780 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I looked into a micro cap once Fonr-stand up mri-it booked sales when the= product was made , to my understanding , from the sec filings, not when = it was sold. nancy - ----- Original Message ----- From: Gene Ricci Sent: Thursday, March 27, 2003 9:45 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) Thanks Tom! I might be all wet but I feel that companies will have a hard time fudgin= g this ratio. They can fudge EPS lots of different ways, but there are f= ew ways to fudge sales. There are some (particularly software companies)= that have in the past. Some used to book the entire amount of a contrac= t sales when it was signed, rather than book when it was billed. But thi= s practice has been under fire and is likely to go away if it hasn't alre= ady. =20 Do you not look at fallen angels? If you do, what would your criteria be? Thanks, Gene - ----- Original Message ----- =20 From: Tom Worley =20 To: canslim@lists.xmission.com =20 Sent: Thursday, March 27, 2003 9:35 AM Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) Gene, a p/s ratio of 1.0 or less is fine if you are looking for fallen an= gels, bottom fishing, value shopping, etc. But I don't see what that has = to do with CANSLIM Because expectations drive price, and thus high expectations would create= a high p/s ratio, I am automatically suspicious whenever I find a stock = hitting new highs, with great CANSLIM fundamentals, but a relatively low = p/s ratio (generally under 2.0). It forces me to dig deeper to figure out= why the price does not already reflect a higher premium. - ----- Original Message ----- =20 From: Gene Ricci =20 To: canslim@lists.xmission.com =20 Sent: Wednesday, March 26, 2003 8:50 PM Subject: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) Appreciate comments on this article. Gene Fundamental Analysis: P/S - I Love You (Sometimes) - ------------------------------------------------------------ Investors are always seeking ways to compare the value of stocks. =20 The price-to-sales ratio provides a simple approach: take the =20 company's market capitalization (the number of shares multiplied =20 by the share price) and divide it by the company's total sales =20 over the past twelve months. The lower the ratio, the more attractive =20 the investment. As easy as it sounds, price-to-sales provides =20 a useful measure for sizing up stocks. But investors need to =20 be mindful of the ratio's potential pitfalls and possible =20 unreliability. =20 Read this article at: http://www.investopedia.com/articles/fundamental/03/032603.asp - ------=_NextPart_001_0000_01C2F44F.2DEE9780 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <HTML><BODY BGCOLOR=3D"#ffffff" STYLE=3D"font:10pt verdana; border:none;b= ackground-color:#ffffff; "><DIV>I looked into a micro cap once Fonr-stand= up mri-it booked sales when the product was made , to my understanding ,= from the sec filings, not when it was sold. nancy</DIV> <DIV> </DIV= > <BLOCKQUOTE style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT= : 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"= FONT: 10pt Arial">----- Original Message -----</DIV> <DIV style=3D"BACKGR= OUND: #e4e4e4; FONT: 10pt Arial; COLOR: black"><B>From:</B> Gene Ricci</D= IV> <DIV style=3D"FONT: 10pt Arial"><B>Sent:</B> Thursday, March 27, 2003= 9:45 AM</DIV> <DIV style=3D"FONT: 10pt Arial"><B>To:</B> canslim@lists.x= mission.com</DIV> <DIV style=3D"FONT: 10pt Arial"><B>Subject:</B> Re: [CA= NSLIM] Fundamental Analysis: P/S - I Love You (Sometimes)</DIV> <DIV>&nbs= p;</DIV> <META content=3D"MSHTML 6.00.2800.1106" name=3DGENERATOR> <STYLE= ></STYLE> <DIV><FONT face=3D"Comic Sans MS">Thanks Tom!</FONT></DIV> <DI= V><FONT face=3D"Comic Sans MS"></FONT> </DIV> <DIV><FONT face=3D"Com= ic Sans MS"><FONT size=3D4>I might be all wet but I feel that compan= ies will have a hard time fudging this ratio. They&n= bsp;can fudge EPS lots of different ways, but there are few ways to fudge= sales. There are some (particularly software companies) that have&= nbsp;in the past. Some used to book the entire amount of a contract= sales when it was signed, rather than book when it was billed. But= this practice has been under fire and is likely to go away if it hasn't = already.</FONT> <DIV> </DIV></FONT></DIV> <DIV><FONT face=3D"Comic = Sans MS">Do you not look at fallen angels? If you do, what would your cri= teria be?</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </D= IV> <DIV><FONT face=3D"Comic Sans MS">Thanks,</FONT></DIV> <DIV><FONT fac= e=3D"Comic Sans MS">Gene</FONT></DIV> <BLOCKQUOTE dir=3Dltr style=3D"PADD= ING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000= 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Ori= ginal Message ----- </DIV> <DIV style=3D"BACKGROUND: #e4e4e4; FONT: 10pt = arial; font-color: black"><B>From:</B> <A title=3Dstkguru@bellsouth.net h= ref=3D"mailto:stkguru@bellsouth.net">Tom Worley</A> </DIV> <DIV style=3D"= FONT: 10pt arial"><B>To:</B> <A title=3Dcanslim@lists.xmission.com href=3D= "mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A> </DIV>= <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, March 27, 2003 9:= 35 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM]= Fundamental Analysis: P/S - I Love You (Sometimes)</DIV> <DIV><BR></DIV>= <DIV><FONT face=3DArial>Gene, a p/s ratio of 1.0 or less is fine if you = are looking for fallen angels, bottom fishing, value shopping, etc. But I= don't see what that has to do with CANSLIM</FONT></DIV> <DIV><FONT face=3D= Arial></FONT> </DIV> <DIV><FONT face=3DArial>Because expectations dr= ive price, and thus high expectations would create a high p/s ratio, I am= automatically suspicious whenever I find a stock hitting new highs, with= great CANSLIM fundamentals, but a relatively low p/s ratio (generally un= der 2.0). It forces me to dig deeper to figure out why the price does not= already reflect a higher premium.</FONT></DIV> <DIV><FONT face=3DArial><= /FONT> </DIV> <DIV style=3D"FONT: 10pt arial">----- Original Message= ----- <DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B= > <A title=3Dgenr@swbell.net href=3D"mailto:genr@swbell.net">Gene Ricci</= A> </DIV> <DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com href=3D"m= ailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A> </DIV> <= DIV><B>Sent:</B> Wednesday, March 26, 2003 8:50 PM</DIV> <DIV><B>Subject:= </B> [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes)</DIV></= DIV> <DIV><BR></DIV> <DIV><FONT face=3D"Comic Sans MS" size=3D4>Appreciat= e comments on this article.</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS= " size=3D4></FONT> </DIV> <DIV><FONT face=3D"Comic Sans MS" size=3D4= >Gene</FONT></DIV> <DIV style=3D"FONT: 10pt arial"> <DIV><FONT face=3D"Co= mic Sans MS" size=3D4></FONT> </DIV></DIV> <DIV><BR></DIV> <DIV>Fund= amental Analysis: P/S - I Love You (Sometimes)<BR>-----------------------= - -------------------------------------<BR>Investors are always seeking way= s to compare the value of stocks. <BR>The price-to-sales ratio provides a= simple approach: take the <BR>company's market capitalization (the numbe= r of shares multiplied <BR>by the share price) and divide it by the compa= ny's total sales <BR>over the past twelve months. The lower the ratio, th= e more attractive <BR>the investment. As easy as it sounds, price-to-sale= s provides <BR>a useful measure for sizing up stocks. But investors need = to <BR>be mindful of the ratio's potential pitfalls and possible <BR>unre= liability. <BR><BR>Read this article at:<BR><A href=3D"http://www.investo= pedia.com/articles/fundamental/03/032603.asp">http://www.investopedia.com= /articles/fundamental/03/032603.asp</A><BR></DIV> <BLOCKQUOTE dir=3Dltr s= tyle=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-L= EFT: #000000 2px solid; MARGIN-RIGHT: 0px"><FONT face=3D"Comic Sans MS" s= ize=3D4></FONT> </BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML= > - ------=_NextPart_001_0000_01C2F44F.2DEE9780-- - - - -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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