Ghost of Igloi wrote:
agip,
And a retailer that has a market cap larger than Wal Mart. If you project AMZN earnings beat for the next year it would trade at 750 times earnings while WMT is at 15 times. That shows me the insanity of this market. AMZN is a great company, but a poor investment.
Igy
Now Igy, you're being way to pessimistic. AMZN presently has negative eps. If it maintains the present price next year with the average forecast eps of 2.87, it will have a PE of only 168!!!
Personally, I buy companies that have a history of making profits, not a history of making losses. There are a lot of "value" plays that are cheap and getting cheaper. Below is a list of Buffet Strong Interest Stocks From "The Warren Buffet Way" via Quicken. Which of these a screaming sells?
Select Symbol/Company Price ROE Debt/Equity Net Profit Margin
AME Ametek Inc $55.15 18.0% 0.53 14.5%
UNP Union Pacific Corp $92.12 24.4% 0.54 21.6%
NVO Novo Nordisk A/S $58.16 65.7% 0.02 29.8%
USPH U.S. Physical Therapy Inc $53.48 20.8% 0.24 10.0%
NVEC NVE Corp $59.51 13.3% 0.00 47.0%
UVE Universal Insurance Holdings Inc $27.19 36.5% 0.15 19.8%
EW Edwards Lifesciences Corp $156.25 37.0% 0.27 34.9%
MED Medifast Inc $30.95 16.4% 0.01 4.6%
MKTX Marketaxess Holdings Inc $97.95 22.4% 0.00 28.5%
OFLX Omega Flex Inc $34.30 40.2% 0.00 16.0%