Trade
Sell BA (Boeing)
I am selling the news, an analyst upgrade at Prudential, a recommendation on Nightly Business Report, PBS TV, Friday, market monitor segment Mr. Russell. Will look to buy on a pullback. I find it tough to sell, when everything looks so rosy, and I am so long-term bullish, however, experience has taught me that this is often a good time to exit.
A little bit on price-earnings ratios (P/E or PE). Here are two stocks Pionier Companies (PONR key stats) and Harrah's (HET key stats). PONR has a PE around five, HET almost 50. However, Pioneer is in a cyclical commodity industry where the price for its main product may have peaked, and the projected PE for Harrah's is more in line for next year. Many beginner investors look too hard at PE ratios, it is one number, but alone it is not enough to make buy or sell decisions.
Read more about why the Pioneer PE is not all that it seems at the Yahoo message board (link). The stock may still be a good value, however, an investor would be making a mistake to value the company only on the latest year's worth of earnings.
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