Replies to post #25 on Graham Corporation (GHM)

[realbiz]

Most Interesting Must do my own DD but I am open to all imput THANX //REALBIZ//JIMMY

[Lansing]

I appreciate your input! I'll pick some up as soon as our baby gives us the long-anticipated PR.

While DOW 6,000 makes me sick too, the P/E in 2000 was 43, which is obviously unsustainable. The people who became intoxicated with optimisim at the peak will be the same people who panic in the end and sell at a single digit P/E ratio. People have a herd mentality and make emotional decisions instead of business decisions. That's why long-term bear markets usually end with the P/E ratio in the 5 - 8 range. Considering we are at about 12 right now, the DOW will almost certainly fail to hold 6,000 and we have to consider a breach of 5,000 a real possibility. A counter-trend bear market bounce will give the herd reason to be optimistic and many will fall victim to a suckers' rally.

All just my opinion but I've been expecting this type of crash. There will be some amazing buying opportunities for independent thinkers who don't get wiped-out on the way down!