What price cheap?

[SimonPB]

Finding value .. long term PE of PIK as a tool for value buying ?? http://bit.ly/bCGhKh

[Quakedog]

Cool!

[Blik]

Nice post Simon. How did you choose your 15 and 18 as breakout values?

[SimonPB]

15 is the seldom hit level, so a great entry level .. 18 no solid thinking, just was a busy level .. kinda mid level ..

[Blik]

Ok - just done one for Discovery - seems to be a cheap (in relative PE terms) buy below about 12.5 and a bit pricey above about 13.7 or so.

[john_1]

Now take this idea one step further and compare the Buying zones of other blue chips...that way you can deploy cash at the right time but also into the best value...PNP has a buying zone of 13 while BATS has a current PE of less than 12...so where do you want to put your cash???

[Blik]

Simon - is there a way one can do this using the Charts tool on this site? Or if not, is there a possibility that ratios like PE, DY and ROCE could be added to the charts tool?

[john_1]

any basic charting programme can do this.

[Blik]

Sure - but can the chart tool on this site do it? If so what would I type or enter to show the DST historical PE range for example? At the moment I just use the historical data in Excel, but that's an extra step to download, and sort or format the data.

[SimonPB]

well maybe .. maybe not .. it BAT cheap at current levels ?? relative to BAT ??

[john_1]

No but it is cheap realative to Pick n pay.. so even at this level you going to do better with your buck if you use current PE as only measure.. so now if you wait to catch BAT when BAT is cheap..then you will be a real winner... that be my point!

[Spoegs]

PEG ratio possibly a better indication of "cheap". But this is not really available "live" and you need access to forecast growth numbers in a format that is easily transferrable to where ever you're doing your PEG calc. "Information is the currency of the new millenium, and probabaly the next one too" Archibald S. McIntyre

[SimonPB]

I use PEG more for growth companies .. and as you say, what of the forcast .. we have them on the site, but the reliability?

[Spoegs]

Do your own forecasts or at least put the forecasts through your own BS detector - DCF etc I suppose. Taking stuff off the SB website in my experience into excel spreadsheets is like a trip to the dentist. Fine if you're only looking at one or two shares but if you're looking at a sector etc then you need novocaine to get through the ordeal. Simon, or anyone else - maybe you've got some tips that I've been missing. If I wanted forecast G's for 40 companies how would you reckon I get them off the site efficiently?

[DST]

Go to tickertalk.co.za - search for PEG tool. Very handy.