Jigglepuff
Chin Jiggla!
What is a good Price-per-Erning multiple for a good stock in these horid markets?
P/E multiples
- Thread starter Jigglepuff
- Start date
AK-74me
"Typical White Person"
It is certainly sector dependent, what would be a good P/E in the tech sector would probably be bad in the energy sector. Most sites have the ability to compare a companies P/E to the rest of the sector.
Tilted
..
Are you asking what a PE Multiple actually is, or what would be considered good right now? Because the answer to the later really depends one a lot of things. And on of the problems with the market right now, is that the traditional valuations don't hold as much weight as they used to. So, the real answer is, the landscape has changed so fast, that we haven't been able to recalibrate yet to know what a good multiple in a certain sector is.
Jigglepuff
Chin Jiggla!
What is good right now is really what I am looking for. I know in 2006/2007 it seemed like everything was 20 to 40. The tech sector is primarily my interest.
To unstable to tell.........kind of figured that.
Thank you for your time good sir.
Respectfully,
Jiggles
C
czygvtwkr
Guest
2x growth, organic growth that is
ROI is really a better figure to look at
ROI is really a better figure to look at
BoyGenius
Cyber Bully Victim
If you watch Cramer, he says anything that hits 40 is run as fast as you can away from it.
Right now I think P/E's are worthless.
Jigglepuff
Chin Jiggla!
Thanks BoyGeniusIf you watch Cramer, he says anything that hits 40 is run as fast as you can away from it.
Right now I think P/E's are worthless.
Cramer is still definately the man!
Tilted
..
Yeah, PE Ratios, and even growth multiples, are not the end all, be all benchmarks that they used to be. The truth is that the nature of IRAs and Mutual Funds has made the markets generally behave more as trading platforms than as investment platforms. Basic fundamental analysis holds less sway than it used to, but that's not to say that it holds no sway.
BoyGenius
Cyber Bully Victim
I like watching Cramer for the educational aspect of his show, but his stock picks are nothing but infomercials for the companies he talks about. I've watched every edition of Cramer since November and if you had a portfolio of the stocks he's recommended during that time, you'd be so far under water right now it would be pathetic.
It's funny to watch someone call-in and say "Jim, I bought XXX stock at $71 when you recommended it, now it's $28, what do I do?" And he says "yeah, my bad, the CEO stiffed us, I got that one wrong, blah, blah, blah, next caller."
Tilted
..
I like watching Cramer for the educational aspect of his show, but his stock picks are nothing but infomercials for the companies he talks about. I've watched every edition of Cramer since November and if you had a portfolio of the stocks he's recommended during that time, you'd be so far under water right now it would be pathetic.
It's funny to watch someone call-in and say "Jim, I bought XXX stock at $71 when you recommended it, now it's $28, what do I do?" And he says "yeah, my bad, the CEO stiffed us, I got that one wrong, blah, blah, blah, next caller."
I catch Cramer on occasion - he can be entertaining and on occasion knocks the ball out of the park when describing what is causing or did cause a particular phenomenon.
Also, often his stock picks and analysis are in and of themselves trade-able events. It seems that a fair number of people, who don't research stocks themselves, watch his show and invest in particular stocks based on his analysis. Sometimes you will see an immediate pop in a stock when he recommends or discusses it, and then a gradual correction to that pop.
When he recommends a stock I own, I might sell it in after hours trading, or first thing the next morning, and then buy it back again at the end of the day or the next day, when that 'Cramer Bounce' loses steam. Or I might short a stock that I don't own, then quickly cover that short when that bounce fizzles out. That trade can be dangerous, so I don't do it often and plan to get out quick, even if I have to take a loss.
None of that is to say that his picks are necessarily bad, just that they create an immediate and temporary bounce that can be trade-able if you pay enough attention to the details. Every once in a while I've heard him caution people not to buy the stocks he recommends immediately, but some people obviously ignore that advice. People shouldn't follow someone else's advice about stocks unless they do a little research and analysis on their own. Other people's stock picks should merely serve to make us aware of a particular stock that we might want to consider.
R
