Fri, 06 Mar 2009
Troy’s Blog
Hi there,
I hope you are all looking forward to a good weekend.
Ok, so I have gone and bought again. This time its Quiksilver. And I have located the Google money directory for shares - amazing! I feel liberated.
Just checking I have something right.... Quiksilver's P/E rating is low now 2.61 but their F P/E is 16.44 that's good right? That means if I buy now they will be crap for the year but next year thy will rocket in earnings. Anyway that's what I can get from my research about P/E ratings, just seeing if I am right?
I think that the stock might go down again next month when they release their losses, and I see that they have reportedly said they aren't being bought out by Nike (but I am sure that everything is for sale at the right price) But they are still a strong brand and pass the 10 year test. And they will start selling well over the summer as winter is a bad season for them. $1.20 is almost as low as they have ever been.
I am trying to use a principle to whatever I buy and it's this: A stock will have been at the highest it can possibly have been in Dec 2007 - Feb 2008 (ish) as I see that as when the gravy train was rolling at its fastest. If a stock is 1/2 what it was then it's cheap and that's most stock. But if it's more than 1/2 what is was back then, I am scarping the bottom of a barrel of either a failing company that was run by idiots and couldn't help but make money when the going was good, or a company that has been hit hard by the Crunch word. So the latter will come out of it leaner and meaner if they are good and fail if they are bad. I am trying to make that definition. Am I an idiot?
That's my reasoning anyway. Sound? Crazy? Stupid? Dare I say it - genius?
All the best gents.
Troy.
posted at: 13:50 | path: | permanent link to this entry