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RealDutch

10/05/12 6:00 PM

#20020 RE: treit2002 #20019

Treit,

show me where it says PEG ratio should only be applied to cash flow positive stocks. Show me where it says PEG ratio should not be applied to OTC stocks.

"The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth."

It's as simple as that. You may give it your personal interpretation and focus on cash flow positive companies. The herd may prefer to discard it completely when looking at OTC stocks. But that's a personal choice. Hey, it's a free world :-)
It changes nothing as far as I'm concerned. Because in the end I will get paid.

This is a $34 stock. I know it is. That's why I'm heavily invested here.
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slyestjester

10/06/12 1:43 AM

#20028 RE: treit2002 #20019

Treit--The only point I'm making is that investors are aware of valuation metrics when they look at a SIAF, and that's one of the things that attracts them, but then most don't take the next logical step because of concerns about integrity. So for most people it ends up not being relevant but for a few (like us), it is extremely relevant.