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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Robohogs who wrote (56678)1/16/2016 9:25:12 PM
From: Robohogs1 Recommendation

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  Respond to of 70372
Page 40 has interesting splits on margins that go a long way to explaining stock moves and economy. I must say midcap industrials hitting peak margins now surprised me given weakness of recovery. Large cap industrials obviously hit by industrial recession just starting and strong dollar. And pharma price gouging and HMO Obamacare gouging are nowhere to be seen.

BTW this is my usual PE site and it just updated. PEs actually look higher than last week meaning a big drop occurred in forward estimates from Birinyi.


To: Robohogs who wrote (56678)1/18/2016 3:34:21 PM
From: Graham Osborn  Read Replies (1) | Respond to of 70372
PSRs like PEs are getting misleading. If Company X has MC 100M and does 100M bond offering to buy Company Y resulting in double sales for consolidated Company XY, shareholders haven't gained any return on capital yet your PSR (assuming the stock doesn't move) is cut in half. For that reason I prefer EV/ Rev. Of course there is the cyclical nature of some businesses at play as well.