herbert said...
dear uncle sam,
i understand your explain already. by the way, BJ CORP has PE = 23.24. Meaning to said for every one dollar u invest period must more 23 years to get capital return. But how come BJCORP counter can shooting up/ capital appreciation for 1 time just for a week??
October 4, 2007 5:56 PM
^V^
halo herbert, u r wrong again ! first of all, even without FA, VT 's stocks r always rated as goreng stock, no surprise at all ^V^ when bjcorp announced its 1st qtr eps @ 4.2 cts last month,it showed a turn around of bjcorp ! bear in mind.. 4.2 cts is only for 1 qtr, theoretically, 4qtrs x 0.42cts , it will give u EPS for year 08 of 16.8 cts, buying at 0.555 , u r actually buying at PE 3.3 $$$$$$ , see that ? even if she cant sustains its EPS of 0.42cts for d rest of d qtrs, for her to achieve 6cts through out d year should not be a problem ! if u calculate based on 6cts , its pe is still below 10 ! dont forget :- vain lady cant stand loneliness, therefore, I am confident VT will definitely goreng it based on his track goreng records, d only problem was i dare not to sai lang all on bjcorp due to his dirty play records, if bjcorp fall under YTL group or Ijm group, i can assure u i will place at least 200 lots on it !
14 comments:
dear uncle sam,
is it possible said XXXX counter fall under its EPS level??? kindly advice...
herbert, do u know what is EPS or not ? tailow n ben..may be u 2 can explain to our bro's question... please ......^V^
the EPS is used primarily as a MEASURE OF PROFITABILITY, and so an increasing EPS is seen as a good sign
PRICE/EARNING RATION... THIS IS THE MOST WIDELY REFERRED TO STOCK MARKET RATIO, ALSO COMMONLY DESCRIBED AS AN EARNINGS MULTIPLE. IT IS CALCULATED AS THE "PURCHASE OF NUMBER OF YEARS' EARNINGS', BUT IT REPRESENTS THE MARKET'S CONSENSUS OF THE FUTURE PROPSPECT OF THAT SHARE. THE HIGHER THE P/E RATIO, THE FASTER THE GROWTH THE MARKET IS EXPECTING IN THE COMPANY'S FUTURE EPS. THE LOWER THE P/E RATIO, THE LOWER THE EXPECTED FUTURE GROWTH
ANOTHER ASPECT OF INTERPRETING IT, IS THAT A PUBLISHED EPS EXIST FOR A YEAR AND THEREFORE THE P/E RATIO GIVEN IN A NEWSPAPER IS GENERALLY BASED ON AN INCREASINGLY OUT OF DATE EPS.... UNCLE SAM AM I RIGHT??
For example, Company X,
> for the year ended 31/12/06, EPS= RM0.10
> overall market P/E ratio = 10
> P/E ratio for X = 20 (because market expects above average growth)
> market price at 30/4/07 = RM2
> during the year, X does even better than expected and by 29/4/2008, the share price is up tp RM3, therefore giving a P/E ratio of 30 (based on EPS for year ended 31/12/06)
> year ended 31/12/07, EPS= RM0.15, announce on 30/4/08. this is in line with expectations so share price is unchange and P/E ratio drops again to 20 (RM3/RM0.15)
somethignwrong here :- (THE HIGHER THE P/E RATIO, THE FASTER THE GROWTH THE MARKET IS EXPECTING IN THE COMPANY'S FUTURE EPS. THE LOWER THE P/E RATIO, THE LOWER THE EXPECTED FUTURE GROWTH), d higher d PE ratio doesnt mean fastest growth ! it could be over goreng by syndicate. same goes to d lower pe ratio does not mean low future growth, it could be due to laggard or less of popularity.
ic ic... in real life... i'm agree with u... but theory said so.. haha.. i still lack of experience in this real world.
as i said ,I am not finish yet on PE ratio, different industry has different PE ratio, will let u guys know on PE chapter 3 2molo.
anyway, thanks sam...
sam, if a company announces EPS 7 sen..the share price will automatically up 7 sen also?
sam, I think you are still the best person to provide advise. ^_^
Looking for your further elaboration on chapter 3 tomorrow.
2.8mil DPS shares purchased by major shareholders in open market.
Indication of moving up?
doesnt eps means earnings per share??
uncle sam, MPHB approaching RM2 already .... my germ gone.
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