Poll: At what price will you cease to acquire more CLDs?

[aj502]

You seem to get what I am hinting at, Profit. You can't because it is through the roof.

Divs don't count twords determining p/e (or book value) - they are normally deducted from the previous periods' value (as a writeoff/expense/etc as a lump sum...).

So as not to give everyone a headache, I won't go all Wall St here, but in general a HI p/e is overbought/overpriced.
There is no actual set "number" which is an absolute buy or sell, and conversely, p/e is NOT the end all - be all technical indicator.

It is however a great 1 look stat to determine a basis for looking into a security.

So...What the hell IS "P/E"?
P = price (the general price the CLDs are going for)
E = Earnings per share (The company's [MA's, not the CLD's])

How to determine a company's P/E?
Take the CLD price and divide it by the company's earnings.

A general rule of thumb is a number over 6 is either capped or overbought.
Now keep in mind, companies can vary BIGTIME on this number depending on sector, momentum, whatever and STILL be a good "buy" at a much higher number.

You have to determine "why" it is where it is.

Now in regard to the EPS, you have to take the revenue number MA is dedicating to the payouts, which I assume is NOT the whole company's revenue (MA does post these..I followed 'em when CLDs came out).
This is the tricky part, as anyone who has looked at MA's quarterlys knows they are in the red, thus negative EPS.

This makes the P/E skyrocket so much it is not even feasable to buy.

Okay, but I said P/E could be hi and still be an ok (initial) indicator, right?
Sure.
Now as I said before, I won't go all Wall St on you all but think and do the research of;
What is the eps pattern?
What is the company's outlook?
Is the company's growth matching it's eps?
Can a company sustain dividends in the red? How/why?
What are the dividends derived from? (ez one)
How is the economy? (Real world, folks. )

P/E is the 1st "look" at what a company is doing. Again, not the be all - end all, but a very good starting indicator.
If it's number is exceedingly hi or low you ought to look deeper and find out why before long term investing.

Maybe a bit longwinded but hopefully not to confusing.

GL!






Tippin'

*disclaimer:
aj502 only plays a financial advisor on the forum. However, he has traded securities for over 20 years (yet still isn't uber rich. )

 

[Mac]

traded securities

I think I found the problem

 

[Magyar_Republic]

Maybe a bit longwinded but hopefully not to confusing.

GL!

Perfectly clear. Not longwinded at all. Thanks for the explanation. It makes sense, and I'm still quite happy with my EU investments. I wont go into why here, it's not necessary.

 

[Profit]

Maybe a bit longwinded but hopefully not to confusing.

GL!

Thanks!

 

[Wollongong]

Oh my... P/E being used to determine book value... really?

And here I was, thinking that the book value is based on stuff like a balance sheet, and the price of shares is based upon the expectations of the market, which don't have to have any real relations. Because after all, often shares are sold at a discount (when people think a company will go bust), or in a takeover situation, the buyer is offering more than the shareprice in the market.
Shares go up and down very happily, on a daily, hourly, or even minute base, balance sheet is usually changed once a year, quarter for big companies (and monthly if the accounting is up to modern standards, but the monthly is only visible internally of the company).

But you have found a way to ignore the sudden spikes and drops in shareprices, and continue to deduct the relative stagnant bookvalue...

I applaud your discovery and really would like to hear your magical formula, which you have found by "trading shares" (which is not really difficult, it's just clicking a buy/sell button....the hard bit is to know what you are doing).

 

[aridash]

A general rule of thumb is a number over 6 is either capped or overbought.

dont know what markets you follow, but P/E of 6 is low. companies in steady, mature industries can achive higher than this and hardly considered overbrought.

as a measure its poor here because CLD arent shares, and a P/E of MA would be negative anyway.

and to add, P/E isnt, or shouldnt ever be used as a " look at what a company is doing.", its a snapshot view of current valuation in the market. usually high P/E indicates high expectation of future growth, not what the company's current state is.

 

[sawachika]

Erm....pardon me but I think the discussion is slowly digressing into the state of MA as a whole rather than what price your buying CLDs at....which isn't the point of this thread.

But anyway, might I refer you guys over to this thread to continue this discussion of MA's state of health financially?

https://www.planetcalypsoforum.com/forums/showthread.php?244548-MindArk-Annual-Shareholder-meeting

I'm rather interested in some financially savvy person analyzing the outlook of MA to us newbies in layman's terms.

 

[Strangelove]

Erm....pardon me but I think the discussion is slowly digressing into the state of MA as a whole rather than what price your buying CLDs at....which isn't the point of this thread.

But anyway, might I refer you guys over to this thread to continue this discussion of MA's state of health financially?

https://www.planetcalypsoforum.com/forums/showthread.php?244548-MindArk-Annual-Shareholder-meeting

I'm rather interested in some financially savvy person analyzing the outlook of MA to us newbies in layman's terms.

In layman's terms, there's no current model to evaluate the value of CLDs but three rules apply.

1. Don't keep any ped in EU that you can't afford to lose.

2. Don't keep any ped in EU that you can't afford to lose.

3. Don't keep any ped in EU that you can't afford to lose.

Besides the over-priced aspect of current CLD's (or so many believe), you have to figure in a lot of factors.

MA could go broke.

Your country may decide EU is illegal. The courts have not decided if EU is legal or not in many countries....but they will sooner or later.

MA could go great gangbusters but nerf the hell out of CLD land areas so dividends go to near zero.

The bottom line is that anyone pretending to be able to calculate the risks and then port that into a CLD value is blowing smoke. That said, I own a few but realize they could go poof at any moment.

CO