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Hostile Takeover

08/17/11 12:12 AM

#30 RE: syncmaster175v #29

syncmaster175v, you request that I give you my reasoning to providing a logical pps value. Let me start by stating there are several ways to doing so. You can find them rather easily through the internet, IHUB, your broker, and many other sources. I have tried most. I have determined what best suits my needs as listed below. There are other elements that I implement, however, I shall not post publicly.

Analyze the stock financials. Asset value divided by the number of shares outstanding. This will give you the cash per share.

Find the cash per share average for stocks relative, it doesn't have to be the whole industry (IMO). 5 to 7 stocks that are the nearest to the stock your investigating. Read their financials completely.

Average the price/earnings ratio of those stocks. I like try to look for 12 to 15x earnings or less.

Use the ratio average of the stock prices to determine the ratio used for your stock. And, there you have my basic starting points.

There may be people who decide I'm not correct with my assertions. There are many factors and many different interpretations. If it were one exact equation, then everyone would win in the market. I could go on and on, but I think you get my point. Use the IHUB,the internet,the broker sites,and the library to read business and financial newspapers and magazines. But, READ as many financial reports as you can.

Good Luck
Respectfully,
HT