| Sunday, May 08, 2005 - 02:04 pm |
P/E depends on profit and price per share (it's obviously). All is normal with P/E since it is only a ratio between 2 numbers.
Abnormality, which I have talken about is that corps with high value
1. Make less profit or are even unprofitable. I don't exaclty assure in that, only guess so.
2. Don't become more cheaper. I have 2 corps, one have 7,195.64B value and another have 3,427.89B. And this price stayes constanly for few years now.
I think that there is something wrong with this system of calulation public corps value.
For corps with one owner all is simple - more it earns - more value it will have.
For public corps - when it makes looses, its value can stay unchangable or even become higher, since there is a demand (for example you as president are bying shares).
mechanism that should decrease value sometimes don't works! Search for HTS public corps with most high value. They make looses & their value never decreases.
This means some mmm ... fools buy shares of unprofitable corps and some another fools dont wish to sell it them? What's the explanation?