crunyanParticipantSeptember 28, 2020 at 8:03 AMPost count: 36
Sean, I have CAJ in another account and want to put in my 3rd tranche; the trailing PE is 25.27 and the forward PE is 14.47. Which is the more important and are they too high to purchase more? Thank you!Sean HymanKeymasterSeptember 28, 2020 at 9:48 AMPost count: 3810
Trailing P/E is what it did in the past year. It’s importance is that’s “for sure” earnings that came in (in the recent past) vs the stock price. The advantage of the forward P/E is that it’s the P/E off of the “expected” or “anticipated” earnings going forward vs. the price. So, it’s more important if they’re accurate about their projections.
During this weird time of COVID, some companies have dismissed their forward guidance because of it being a bit more difficult to call. However, judging the P/E’s is most important to me on the first/original investment. It tells me whether I should be entering the stock in the first place. And once I’m in, as long as its not weak fundamentally, then I’m fine with the other two tranches going in. CAJ is solid. So I’m fine with averaging downs on it.
Back to the P/E’s, the forward P/E is the most important as long as their projection is accurate. Why? It’s looking into the future to see what they should do, going forward, rather than what they’ve done in the past in earnings. With the forward P/E being cheaper than the trailing P/E, they’re saying they should earn more money relative to its present stock price. These low levels probably won’t last long. So if you’re considering buying a 3rd tranche, you should go ahead and do it. What I think it’s going to do has already been stated on the most recent Thursday video though. That still stands. Hope this has been helpful.crunyanParticipantSeptember 28, 2020 at 10:30 AMPost count: 36
Thank you! I do so appreciate your help and advice and knowledge!BekkaParticipantSeptember 28, 2020 at 11:02 AMPost count: 251
It was helpful to me…I’m copying & pasting in my Sean folder!Sean HymanKeymasterSeptember 28, 2020 at 11:11 AMPost count: 3810
I’m glad that was helpful and still thrilled to know a “Sean folder” exists. ha-ha.Loveit38ParticipantSeptember 28, 2020 at 11:17 AMPost count: 66
Good idea Bekka! Usually if I want to remember a post, I note the stock and the date it was posted. Your method will work as well. Thank you for the input!Loveit38ParticipantSeptember 28, 2020 at 11:18 AMPost count: 66
Should have said: I note the stock and date it was posted in the Members Forum.Sean HymanKeymasterSeptember 28, 2020 at 11:18 AMPost count: 3810
Yep, you could copy and paste posts that impact you, to a Word document, etc. and save it to your Desktop, etc. Whatever works best for you.Sean HymanKeymasterSeptember 28, 2020 at 11:21 AMPost count: 3810
By the way, I find that its usually the women on here that are quicker to note things…go back and re-read things, etc. Love that! It’s one reason why I wrote this: https://logicalinvestor.net/blog/why-the-women-who-dare-to-delve-into-investing-tend-to-do-very-well/Randall BeamParticipantSeptember 28, 2020 at 12:07 PMPost count: 58
I only keep a Sean’s mistakes folder – ha. On a serious note; I noticed that TDA shows a TTM P/E of 25.21x while Yahoo shows a Trailing P/E of 8.55x & a future of 17.48X for CAJ. And Macro Trends shows a 9/22/20 P/E of 27.05 at a price of $16.23. Why all the variance? Are they all using different Analysts who are pricing CAJ differently & different time frames?
Thanks!!!Sean HymanKeymasterSeptember 28, 2020 at 12:14 PMPost count: 3810
Yahoo Finance does not show what you’ve posted. That’s incorrect. https://finance.yahoo.com/quote/CAJ/key-statistics?p=CAJ
I don’t use TD Ameritrade for fundamental analysis. Never have. And I don’t even know who Macro Trends is. So I’m not trusting them either. Yahoo Finance has been solid for fundamentals over the years. So has GuruFocus.comRandall BeamParticipantSeptember 28, 2020 at 12:40 PMPost count: 58
This is a spreadsheet that I use from Yahoo; it’s a build your own, which automatically pulls the info you select. Offered the greatest flexibility with autofill. I don’t know where it is pulling the info. from; but I assumed it was accurate & current. All the other information had been current & correct. I never checked the P/E info or the 50 & 200 DMA information. Glad to know that I should not be trusting the info. (at least the P/E info.
Thanks!!!Sean HymanKeymasterSeptember 28, 2020 at 12:49 PMPost count: 3810
It’s why I’d rather just go straight to the source.Sean HymanKeymasterOctober 13, 2020 at 10:43 AMPost count: 3810
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