Når det kommer til P/E så kan dette være verdt å huske på.
Quotes fra boken til Mark Minervini “Trade Like a Stock Market Wizard”.
Her kommenterer han hvordan man finner såkalte “Superperformers”.
"Many investors missed these great companies during their phenomenal growth phases because of their relatively high price/earnings (P/E) ratios.
In 1991, the 40 top-performing stocks (starting at above $12 a share) began the year with an average P/E of 29, and by year end their P/E ratios had expanded to 83."
"Some analysts will recommend that you buy a stock that has had a severe decline. The justification may be that the P/E is at or near the low end of its historical range.
In many instances, however, such price adjustments anticipate poor earnings reports. When quarterly results are finally released and a company misses analysts’ estimates or reports a loss, the P/E moves back up (in some cases it skyrockets), which may cause the stock price to adjust downward even further.
This was the case for Morgan Stanley (MS/NYSE) in late 2007. The stock price fell and drove the P/E to a 10-year low. Morgan later reported disappointing negative year-over-year earnings comparisons, and the P/E ratio promptly soared to more than 120 times earnings. With
earnings deteriorating and the stock selling at a P/E of 120, the stock was suddenly severely overvalued.
The share price plunged even further to under $7. The cause of Morgan Stanley’s decline was an industrywide financial crisis, and by 2008 the P/E ratios of Bank America, Citigroup, and AIG all hit 10-year lows, along with those of many others in the banking and financial sector. Within 12 months, all three stocks plunged more than 90 percent.
Buying a cheap stock is like a trap hand in poker; it’s hard to get away from.
When you buy a stock solely because it’s cheap, it’s difficult to sell if it moves against you because then it’s even cheaper, which is the reason you bought it in the first place. The cheaper it gets, the more attractive it becomes based on the “it’s cheap” rationale. This is the type of thinking that gets investors in big trouble.
Most investors look for bargains instead of looking for leaders, and more often than not they get what they pay for"