Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

hmmm

Reply
Rams
Super Contributor
will be adding below 220....
0 Kudos
J12
Frequent Contributor
20 Nov 2008. BIL dropped to PE below 6 for just that day. A week later it was up over 50%. Probably the lowest PE BIL has ever been at. Anyways, before 2008, I would have thought that a lifetime was too short to see the US on the brink of technical default, the eurozone on the brink of collapse, China overtake the US as the worlds biggest economy (which I still don't believe will happen despite all the stats), gold become more expensive than platinum, house prices falling and I'm pretty sure there are other things that could go on that list... but we've seen a lot of these things recently and I think people are no longer disregarding the probability of these rare events occurring. In fact, they're probably over-estimating the likelihood of these events occurring again and therein lies some opportunity for the patient investor.
0 Kudos
Not applicable
So let me see if I got your strategy right. You are advocating buying shares in depleted mines, with companies that openly state they won't hit their production targets, and sit on PE's in the 50's with a product that is dropping in price and costs that just simply cannot be contained? And a chart that needs to be turned upside down for it to be of any interest to a bull trader. Care to elaborate how this strategy works?
0 Kudos
kwagga
Super Contributor
Goldfields is hardly sitting on depleted mines, trading at a PE of 10, level headed management and the share is 45% off it's November high. It's siting nicely on support and the current R/$ appreciation and current gold price is highly beneficial to this companies earnings. Just look at earning for this Q compared to earnings for last year this time. The fundaments and technicals don't lie, and this company at this price is a buy in my books. I don't trade penny Gold shares.
0 Kudos
SimonPB
Valued Contributor
what it was in november or any other time is meaningless ..
0 Kudos
kwagga
Super Contributor
0 Kudos
SimonPB
Valued Contributor
I refer you to the DDT chart ..
0 Kudos
kwagga
Super Contributor
Rather refer me to the DDT PE when it peaked @76. What was it 50,60 ?
0 Kudos
THRESHOLD
Super Contributor
And DDT was a new company with no assets, no barrier to entry and trading at 100x+ earnings with no cash flow to speak of. GFI has insurmountable barriers to entry and is trading at 8x earnings while - from a cash generation point of view - she is becoming a printing press!
0 Kudos
kwagga
Super Contributor
Nice head butt Threshhold. Hopefully it will keep the Gold bully posse away.
0 Kudos
SimonPB
Valued Contributor
Kwagga, what's PE got to do with it, you mentioned price .. thesh, DDT wasnae new, they listed mid 80's and had couple billion rev, and yes PE of some 100 ..
0 Kudos
Rams
Super Contributor
0 Kudos
kwagga
Super Contributor
0 Kudos
THRESHOLD
Super Contributor
Never discussed their revenue - every IT STOCK churns turnover at no margin - well known. They were new - 10 years old and a remodelled business is a baby. Compaq came to market arounf the same time in the US - grew exponentially and then went bust 15 years later. That's IT - it is pointless comparing two such vastly different sectors.
0 Kudos
THRESHOLD
Super Contributor
Well - had you bought DDT at R100 - you could have waited forever and never got your PRICE. So yes - TIME!
0 Kudos
Rams
Super Contributor
my point...earnings is time based, so its always historical, but price is NOW, no history to it, so why corrupt something so now(PRICE) with something like earnings(TIME< past) which is so historical?
0 Kudos
THRESHOLD
Super Contributor
Price is based on earnings (over time) - so -I am not doing anything - the market is! You cannot control the price - only when you buy or sell. The price is based on your timing - not the other way around. That is why traders employ a stop loss - to correct for timing errors. Otherwise they could adopt the attitude "I'll just wait for it to recover."
0 Kudos
keng
Contributor
0 Kudos
keng
Contributor
0 Kudos