^V^ PE (5) ^V^

^V^

At time of this posting, Dow up 88 points..woww... where r all d sub prime worries ? all gone with wind ? really feel sorry for those who short Dow n KL future, told u guys already, mkt is unpredictable, when whole world think that sub prime crisis will pull Dow down for at least 1,000 points, she goes againts d odd, from makro economy view, as i said earlier, World fund will surely move from west to east slowly but surely seeing there r great upside potential for Asia currency n equity ^V^

Back to PE, I left out one important factor of how to avoid wrong picking of Low Pe stock. :-

GEARING = Asset vs Debt

Gearing below 0.5 ( U hv cash $1.00 vs debt of 0.50 )is considered healthy

0.5 to 0.8 ( Cash 1.00 vs debt of 0.50 to 0.80 ) considered normal n acceptable

U should avoid Low PE stock which gearing exceeded 1 !

gearing exceeded 1 means u hv $1.00 but u hv debt more than $1.00

One classical example := Megan

Megan was once stood at PE 2+ (50% return per annum ), in d same time its gearing almost touching 2, in short :- they hv one dollar in hand n also 2 dollars in debt .

If u r not from accounting back ground to find out what is its gearing stand from balance sheet, u can either find it from osk data base or the edge .

FYI, Plenitude is one of d million that having gearing of ZERO ! Low PE(7) plus high NTA >5.00 ( its current NTA 3.20 was calculated in year 2000, by now it should worth >5.00 at least ) ^V^

wowww almost 4am already..gua mahu pergi kow kow g zzzzzzzzzzzzzzzzzzzzzzzzz

Gd night ^V^