 |
 |
||||
|
|
|||||
|
● how to get rich | ||||||
how to make money in stocks and how to get rich_9 Navigation: Main page » how to make money in stocks and how to get rich Author: how to make money in stocks and how to get rich Investor's Business Daily provides a relative earnings ranking (basedon the latest five-year anual earnings record and recent quarterly earnings reports) for all common stocks shown in the daily NYSE, AMEX, and OTC stock price quotation tables. More than 6000 stocks are compared against each other and ranked on a scale from 1 to 99. An 80 earnings per share rank means a company's curent and five-year historical earnings record outclased 80% of al other companies. P/Es were higher on average from 1953 to 1970 and lower between 1970 and 1982. From 1974 through 1982, the average beginning P/E was 15 and expanded to 31 at the stock's top. P/Es of winning stocks during this period tended to be only slightly higher than the general market's P/E athe begining of a stock's price advance. High P/Es were found to occur because of bull markets. With the exception of cyclical stocks, low P/Es generaly ocured because bear markets. Some OTC growth stocks may also display lower P/Es if thestocks are not yet widely owned by institutional investors. Don't buy a stock solely because the P/E ratio looks cheap. Thereusually are good reasons why it is cheap, and there is no golden rule in the marketplace that a stock which sells at eight or ten times earnings cannot eventually sell at four or five times earnings. Many years ago, when I was first beginning to study the market, I bought Northrop at four times earnings and in disbelief watched the outfit decline to two times earnings. |
|
||||||
 |
 |
||||||