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Re: treit2002 post# 20023

Saturday, 10/06/2012 4:01:16 AM

Saturday, October 06, 2012 4:01:16 AM

Post# of 163761

But you cannot name one BB company that it applies to, nor one cash flow negative company, let alone both. Yes, it's a metric, but just one of a hundred.



I don't get your point. PEG ratio applies to all OTC stocks, as does P/E ratio. The only difference between P/E and PEG is whether you include future growth rate.

If your only point is, that a Chinese small cap on OTC will not be fairly valued by the market due to certain concerns then we already know this. But then what's your definition of "true value" ?

You want one BB example?
HINKY. PEG ratio = 0.83
It's actually on the pink sheets.

I am willing to apply a 50% discount for SIAF when determining true value for SIAF. I've already mentioned this. Not because it is OTC or Chinese. But because they're unexperienced to some degree, when looking at accounting etc. Because there are cultural differences that can be exploited by the shorts, especially if they uplist to Nasdaq. Not because PEG ratio does not "apply". It most certainly does IMO. Because it applies to all stocks.

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