Edited by xD&Cox, 16 January 2007 - 11:57 AM.
For value investors, here is one you may like
Started by
A-ha
, Jan 16 2007 11:57 AM
2 replies to this topic
#1
Posted 16 January 2007 - 11:57 AM
My second largest short position from 16s
I really want to short more right here but hell there are too many others yet to deflate out there.
So I curb my appetite and will let it go below the book value... maybe I will cover a share or two there
Ohh you may also wanna check AMD which I shorted over 27 in September... It must have a P/E of 1 by now ...
#2
Posted 16 January 2007 - 12:25 PM
P/E is the biggest trap - during the plunge, P falls faster than E in anticipation of sharply falling E. P/E looks very good. During rise from bottom, P rises fast, while E is still in the crapper, and the whole army of value-investors keep shouting that P/E is so high that the market is going to crash.
It is not the doing that is difficult, but the knowing
It's the illiquidity, stupid !
It's the illiquidity, stupid !
#3
Posted 16 January 2007 - 05:41 PM
Absolute value of P/E ratio is not as important as its impending
and perceived direction.
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule