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Re: lentinman post# 4945

Sunday, 02/20/2005 4:06:35 PM

Sunday, February 20, 2005 4:06:35 PM

Post# of 173781
Lent.. I agree with you.. that one opinion about how the future prospect of a particular company will be often differs from other people's opinion... and that's why most of us hold/buy different stock (with some overlap).. and the list on this board stock goes as many as 100 different stocks..
But I see that most of us have similar philosphy.. we all demand reasonable valuation...

And now I also got what you said without consensus (or analyst estimate of the company growth) putting a limit at PEG ratio for criteria of the board will do nothing because all of us can subjectively estimate or make up the growth in a way that it will still fit the PEG ratio limit that the board has set.
(I did taken your statement out of context beofre)..

Having said that it's going hard to put any limit/criteria that involves uncertainty (or things that will happen on the future).

PE ratio itself is not very useful by itself as it doesn't include future performance.. but it's definitely a good start (as it means the copany makes money now)... the addition of PEG definitely helps somewhat to see where the company is heading directionally (that they will still make money in the future)...

Stan

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