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Owner Earnings

Those PE ratios will look much different in 12 months when those companies earnings decline by 50%.


Those are largely commodities stocks, and it would be interesting to see their PEs based on forward estimates at the bottom of the 10-15 year price ranges.


P.e. for value will be 6 to 9 and growth stock will have p.e.'s in the tweenies,and a 4% div. yes aapl,goog,msft, etc ,etc will have to pay a real div.


Historic buying opportunities occur when trailing PE's are below 10.

Michael Pitre

Thanks for your continuing good work. I read you often. But I have to disagee completly with your take on PE's No way is this the buy of a lifetime. Problem is people use operating earnings and this is in no way a true pe. Based on GAAP earnings we are way overvalued. Thanks, Mike Pitre.


How about most of them have negative earnings at the time you look them again?


How many of these companies will be bankrupt within 24 months? Looking down the list I see a lot of banks, companies in dying industries and heavily leveraged cos that will have a hard time borrowing more money in this environment.


"Those PE ratios will look much different in 12 months when those companies earnings decline by 50%."

Did you even read the article? The P/Es on these would be about 10 even after halving the earnings.

None of the scared chickens would buy any of these stocks would be 0.5

I bet ya they'd handily hand over their money after any of them went up 20% though.

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