October 12, 2007 – stlplace

Reading Time: < 1 minute

Last Updated on October 13, 2007 by stlplace

(Update Oct 14) I saw this “UBS analyst conference call” from trader168, it talked about “UBS analyst followed the momentum, not the fundamental analysis”. Some food for thought amid all the craziness in the China A share market, and its ripple effect on Hongkong and US markets.

(Original) The performance of recent Haigui stocks are spectacular, here are today’s closing prices of 3 big boys recently came back from Hongkong.

China Shenhua Coal, 中國神華: 1088.HK (54.00 HKD), 601088.SS (92.12 Yuan)

COSL, China Oilfield Service Ltd, 中海油服: 2883.HK (19.72 HKD), 601808.SS (51.65 Yuan)

China Construction Bank: 0939.HK (7.27 HKD), 601039.SS (10.06 Yuan)

For reference, one HKD is slightly less than one Yuan (CNY). Interestingly, Shenhua in Chinese also means fairy tale 🙂

What to read from PE ratio?

Reading Time: 2 minutes

Last Updated on October 12, 2007 by stlplace

PE ratio, stands for the stock price vs. earning per share ratio, is the most commonly used (and mis-used) ratio in the investing world. I saw this PE ratio question at trader168 couple days ago, the question goes like this:

BX P/E: 1.97
MSFT P/E: 21.15
JAVA P/E: 46.01
BIDU P/E: 195.95
VMW P/E: 268.98

为什么PE比能差这么远？不同行业之间的PE是不是没得比？
Why the big difference on PEs from difference companies? Is that true that we should not compare PEs from different industries? (my take: that’s true)

目前PE还算个有用的指标么？
Is PE a still usable indicator? (my take: yes. If used properly)