PER is so .... limited....

Use PEG instead.

Somewhere along the way the distinction between investor/trader begins to blur.. example WB, he hold some stocks for 10-20 years YET he regularly BUY and SELL stocks after a year or two.... so investor or trader?

This post has been edited by gark: Apr 5 2014, 01:08 PM

OK.. will google it later...

LOL!

No need to blur blur one...

Do what we know and think is correct.

Buffett also average up one hor (eg? his Coke investment. )



Yeah, PER got many faults.

It only measures stock price versus the earning.

tells you nothing about the company.

A low PER doesn't mean a good company...
A high PER doesn't mean a lousy company...

it just means the stock is laku or not only.

ok.. need to find food... hungry.

Explanation is here.. frankly PER of 8x-10x is only suitable for slow growing companies, it does not account for the time value of growth in earnings.

http://en.wikipedia.org/wiki/PEG_ratio

http://pages.stern.nyu.edu/~adamodar/New_H...ectures/peg.htm

http://www.wikinvest.com/metric/Price_to_Earnings_Growth

Yeah I started out using PER, then I noticed SOME (not all) high PER companies seems to make the most money, switched to PEG and now I am doing much much better. PEG is coinedby the famous trader/investor Peter Lynch.

Yes WB not only average up coke, but many others such as geiko, wells fargo, etc and he does not hesitate to dump when the company is no longer right like Kraft and CNOOC....

This post has been edited by gark: Apr 5 2014, 01:25 PM

The recent 2 weeks huge volume implicating more and more people went in, the stock seem consolidating after the 6 days surge.

Thank u ah boon for the answer given, i know what to do on the next week

What are you going to do next week? let us know first lor..

I think another 2-3 days shall provide me answer, my enter position was 2.29.

But then my observation might prove me wrong if there is huge invisible hand

Recently Insas Inari caught the spotlight of most investors recently

This post has been edited by yhtan: Apr 5 2014, 01:26 PM

I see this a bit similar as Ah Lian case

Greed easily make human blind, sometimes

I flip through the announcement since IPO, their project supply of 10mil mykad to government ended last year Dec.
So is this indication of significant drop in coming quarter profit?
Until now there is no announcement regarding major contract awarded.

Fishy eh?

When I start all I hear low pe (pe < 6) means fundamentally good.

I found out such statement is so erroneous.

229?

balls of steel or what!!!

when we talked, Inari was less than 80 sen woh.

apa dah jadi?

See any case is worth a study for me.

From my stance with Zhulian, you probably can guess my stance with this one.

Nevertheless, I still make some notes on my 555 book.

Not necessary....

But if PER of 6x and growth of at least 15% a year... i will grab by the lorry load..

But if PER of 6x and the growth is negative ... i will run far far away..

PER is just a tiny portion of fundamental analysis... does not tell the whole picture unless you bring all parts to play.

When there's no business, RM5 million CCTV contract also they announce.

A bit of a basic explanation perhaps, as seasoned investors/trader most already know...

A good read none the less for the newcomers to stock investing....

Why invest in equities?

This post has been edited by gark: Apr 5 2014, 02:32 PM

5 million for how many years? 2014 to 2020... even if get 50% margin, divide by all those years.. 1 year is how much?

A drop in the bucket only...hardly significant

This is the risk of companies relying on government ONE-OFF contract, they don't like you, they just kick you off...

This post has been edited by gark: Apr 5 2014, 02:34 PM

I learn the balance sheet is important, esp cash flow.

Ya free cash flow or owner's earning ... the actual cold hard cash a company gets into their pocket.

Not many people attempt to read the cash flow page cause it is full of numbers cannot make head or tail out of it... but it is one of the most important ones.

like homer, i look at the free cash flow ....

This post has been edited by gark: Apr 5 2014, 02:38 PM

I don't use any complicated formulas...

if I have to use the calculator... it's too complicated jor.

most important for me to see first is see...
end cash must be more than start cash.

as long as can see got increase.. (and not increased by borrowings or sale of asset)
the company is good la...

simple and easy.

Ah... I see a different opinion.



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