RE:There is a bigger issue hereAccording to
this theory, 2016 is not looking too good so far. Dow's December low (17,128) was breached last week (16,346).
fdfd12 wrote:
Guys the way the market reacted the last 2 days is not good. China is a headache. I am hearing
credit crunch in China spilling over to us.
What this all means is something close to 2008-2009.
What this means is the following.
I owned a stock, HCG during that mess.
They were a $40 stock earning .75 every Q for $3 for the year.
Because of this mess, HCG went to $14 and stayed there for 3 months.
That made it a PE of less than 5 for 3 months. Form $15, it then reached $100 5 years later.
The problem is that, CXR, now matter what earnings they get, might fall into the same trap.
They can have 6.50 US per year or 9 CAN and still trade at a 5 PE if this CHINA headache continues.
This is why the stock droped almost $8 this week.