GREY:PLDLF - Post by User
Post by
SurfForWealthon Nov 04, 2002 6:57pm
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Post# 5558074
My last PLB message!
My last PLB message!I dumped my last few shares at the open today. IMO Bio is correct in many of the comments made. How do you value a company with drastically shinking earnings. They have crushed investor faith with such a dramatic downward guidance revision....at least that's how I feel. I try to hold successful small growth companies with nice earnings growth and reasonable PEG's. It seems like this could be the first jar of cockroaches which usually means that there will likely be more to come in the Q's ahead. The market looks ahead and for the next few Q's you will see earnings lower than the year before which means the P/E will rise every time they report. The only way to value them now is with P/B. RC & TD lowered targets to around $4 which is probably about right. You can buy good companies with growing earnings right now for 10-15 times & some have 25-30% earnings growth. Why pay 15 times for earnings which will fall sharply? The only thing in PLB's favour right now is the balance sheet. If the stock gets cheap enough & they can turn some positive surprises next year then it might be a good buy. JMHO, Cheers!!!