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Old Nov 12, 2007 | 04:33 PM
  #21  
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RB
snitches get stitches
 
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Originally Posted by Skelly_GSR
Did you get that book I told you to get yet?
No point. I majored in finance for a reason...
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Old Nov 12, 2007 | 04:35 PM
  #22  
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because the price was over inflated from speculation at the get go.
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Old Nov 12, 2007 | 08:21 PM
  #23  
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Originally Posted by RB
If you trade based solely on stock price, you don't deserve to be buying stocks at all. Earnings per share is far, far more important.
Earnings per share doesn't mean squat unless the company is paying a dividend. A common misconception is that earnings = cash; but it doesn't.

http://bootstrapeconomist.org/category/ci/


http://bootstrapeconomist.org/2007/0...balance-sheet/
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Old Nov 12, 2007 | 09:13 PM
  #24  
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RB
snitches get stitches
 
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Originally Posted by Dweezel
Earnings per share doesn't mean squat unless the company is paying a dividend. A common misconception is that earnings = cash; but it doesn't.

http://bootstrapeconomist.org/category/ci/


http://bootstrapeconomist.org/2007/0...balance-sheet/
Surplus cash in a growing company isn't exactly the greatest thing, though.
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Old Nov 12, 2007 | 09:16 PM
  #25  
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Originally Posted by RB
If you trade based solely on stock price, you don't deserve to be buying stocks at all. Earnings per share is far, far more important.
So if most bought at say around 100 a share and now it is at 1000 a share what would you say the earning per share would be?

Seems to me it is 9x more than I invested and therefore I made money and will then sell the shares and be happy.

How else would you suggest a person does this?
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Old Nov 12, 2007 | 09:17 PM
  #26  
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From: Portland, OR
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Originally Posted by Nightshade
So if most bought at say around 100 a share and now it is at 1000 a share what would you say the earning per share would be?

Seems to me it is 9x more than I invested and therefore I made money and will then sell the shares and be happy.

How else would you suggest a person does this?
Yes, but if earnings in the company had gone up by a corresponding amount, then it's being evaluated appropriately. EPS is based on how much the company is making, not how much you're making on the investment.
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