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  • JohnHenry
    Senior Member
    • Mar 2006
    • 1020

    #46
    Hi

    I have questions that I’m not clear on the subject “earning”.

    One of the many criteria’s in researching for good stocks are to look for quarterly earnings of 25% or better of the last two quarters over the year before. And annual earnings of 25% or better over the past two to five years.

    Is the EPS a quick way to screen out a good stock?

    Example: An 80 EPS rating simply means this stock is outperforming 80%
    of all other stocks based on earning growth.

    “Outperforming 80%…growth” Does it relates to which sector(s)
    (tech. vs. retail) it’s outperforming or it’s an overall?

    Buying stocks with high PE ratios.
    What is a high PE ratio, does it relate to which sector(s)?

    It makes sense to purchase stocks with both high EPS and PE ratios.
    Would this be a good idea to purchase stocks with high EPS and medium or low PE’s?

    Comment

    • skiracer
      Senior Member
      • Dec 2004
      • 6314

      #47
      Originally posted by StkyTreat
      Hi Skiracer

      I'm in my second year Calculus and First year Physics at a junior college because my high school doesn’t offer those classes. . I don’t have a major yet, I just started high school last fall but I think my parents want me to be an engineer. They made my brother become an electrical engineer and he hates it.

      See you after finals, thanks everyone for the great feedback. It gives me something to think about until I come.

      What do you get in the second year of Calculus these days. It's been a long time but I had it thru differential equations. Have you started substituting for U yet?
      THE SKIRACER'S EDGE: MAKE THE EDGE IN YOUR FAVOR

      Comment

      • IIC
        Senior Member
        • Nov 2003
        • 14938

        #48
        Originally posted by StkyTreat
        Hi

        I have questions that I’m not clear on the subject “earning”.

        One of the many criteria’s in researching for good stocks are to look for quarterly earnings of 25% or better of the last two quarters over the year before. And annual earnings of 25% or better over the past two to five years.

        Is the EPS a quick way to screen out a good stock?

        Example: An 80 EPS rating simply means this stock is outperforming 80%
        of all other stocks based on earning growth.

        “Outperforming 80%…growth” Does it relates to which sector(s)
        (tech. vs. retail) it’s outperforming or it’s an overall?

        Buying stocks with high PE ratios.
        What is a high PE ratio, does it relate to which sector(s)?

        It makes sense to purchase stocks with both high EPS and PE ratios.
        Would this be a good idea to purchase stocks with high EPS and medium or low PE’s?
        To me, the IBD EPS rating is too backward looking...I don't care what a stock did up to 5 years ago...I care about what it will do tomorrow. Yeah, they weight more recent quarters a little heavier...But I pass on their percentile ranking.

        Now...I would look back a couple quarters to see if EPS is increasing and I also like to see increasing projections. The analysts may be full of it but what you gonna use?...Well, if the companies issue guidance I would put more weight in those outlooks than I would in Analyst's.

        PE ratios...I don't pay much attention to them...But if you want to then I would suggest looking at forward (projected PE's). You can calculate those yourself if there are projections.

        You also might want to look into PEG http://www.moneychimp.com/articles/valuation/peg.htm

        Good Luck...Doug(IIC)
        "Trade What Is Happening...Not What You Think Is Gonna Happen"

        Find Tomorrow's Winners At SharpTraders.com

        Follow Me On Twitter

        Comment


        • #49
          Originally posted by skiracer
          What do you get in the second year of Calculus these days. It's been a long time but I had it thru differential equations. Have you started substituting for U yet?

          He is probably past the u v substitution and maybe at series and sums, or vector calculus.

          Comment


          • #50
            Originally posted by StkyTreat
            Hi Skiracer

            I'm in my second year Calculus and First year Physics at a junior college because my high school doesn’t offer those classes. . I don’t have a major yet, I just started high school last fall but I think my parents want me to be an engineer. They made my brother become an electrical engineer and he hates it.

            See you after finals, thanks everyone for the great feedback. It gives me something to think about until I come.
            From my second-hand experience, if you do not want to be an engineer, then do not do it.
            I watched a very good friend get forced into it…for a while it was a not a fun life if you do not like.
            BTW-Finance likes people who are good at math.

            Comment

            • JohnHenry
              Senior Member
              • Mar 2006
              • 1020

              #51
              Originally posted by diogenes
              He is probably past the u v substitution and maybe at series and sums, or vector calculus.
              U substitution was last semester, I just finished Area under the curve, L'Hopital Rule, Series, Conic Sections, and Polar Coordinates. I'm so lost I'm tell you. I didn't see the whole picture of learning derivatives during the first semester but after taking physics I get a better picture of how derivatives are use but not a full understand.

              There are a lot of people here that know abour or have taking calculus. Are you math teachers or engineers?

              Comment

              • JohnHenry
                Senior Member
                • Mar 2006
                • 1020

                #52
                Originally posted by diogenes
                From my second-hand experience, if you do not want to be an engineer, then do not do it.
                I watched a very good friend get forced into it…for a while it was a not a fun life if you do not like.
                BTW-Finance likes people who are good at math.
                Since I was little my parents had drilled the suggestion of becoming an engineer in our heads. My mother’s side of the family comes from a line of six generations of engineers (industrial, civil, but most geological); my brother is the first electrical engineer (EE).

                My brother first started as a civil engineering during his first two years in college and switched to EE during his third year because he said if mom wants me to be an engineer I’m going to pick the hardest discipline of the five and the job market for EE was HOT during his time.

                Our mother told us, we all must go to college to learn to better ourselves. It doesn’t matter what subject we study as long as we are able to find job when we graduate. She did hint the top three professions were doctors (of course), attorneys, and engineers. I notice she didn’t say business.

                My brother said of the three, becoming an engineer would be the best choice. Because an engineer can make a career change and become a doctor, an attorney, or a business man, but it is harder for a doctor, an attorney, or a business to becoming an engineer with a basic math background.

                He could be wrong but it makes sense to me.

                Anyway I notice he is never happy and always depress since he started engineering school and after graduating with no jobs so now he’s working on his master and will finished next semester.

                Comment

                • jiesen
                  Senior Member
                  • Sep 2003
                  • 5322

                  #53
                  I'd suggest going with what interests you. From the looks of it, engineering would probably be right up your alley, especially considering it's in your blood. Doctors and lawyers can make more money, salary-wise, but they end up putting insane hours in to do it. If you're a good engineer, though, you can successfully build a business just as you would an airplane, a bridge, or a circuit board. And this is key to making the really big bucks.

                  You're in high school now, though, so you should take your time, and enjoy being young and irresponsible for a while longer. Don't worry too hard about a career yet, chances are you'll end up working in a completely different field than what you'll pick as a major in college anyway. And stay away from EE, those courses are nuts! (coming from someone who majored in physics)

                  Comment

                  • spikefader
                    Senior Member
                    • Apr 2004
                    • 7175

                    #54
                    Originally posted by StkyTreat
                    ..There are a lot of people here that know abour or have taking calculus..
                    Dude...for trading you need calculus!! hehe
                    Calculus 1: Determine where support and resistance is.
                    Calculus 2: Determine smart risk/reward trade plans relative to 1.....and then stick to them.
                    Calculus 3: Determine location of boxing glove for when you break trading rules.
                    jejeje

                    Comment

                    • IIC
                      Senior Member
                      • Nov 2003
                      • 14938

                      #55
                      Engineering sounds boring to me...But then again we are all different...I majored in Sports, Beer and Girls and I'm doing OK.

                      BTW...Speaking of High School...There's this kid right here in So. Cal. that has his own stock site...He is only in 10th grade...I don't personally know him but I know somebody who knows somebody that knows him...I think it is great that he's doing this site:



                      Good Luck...Doug(IIC)
                      "Trade What Is Happening...Not What You Think Is Gonna Happen"

                      Find Tomorrow's Winners At SharpTraders.com

                      Follow Me On Twitter

                      Comment

                      • JohnHenry
                        Senior Member
                        • Mar 2006
                        • 1020

                        #56
                        Originally posted by jiesen
                        (coming from someone who majored in physics)
                        Hey Jiesen

                        Electron flow one direction and current flow in the opposite direction, I don’t understand?
                        Did Benjamin Franklin make a mistake?

                        Comment

                        • jiesen
                          Senior Member
                          • Sep 2003
                          • 5322

                          #57
                          Originally posted by StkyTreat
                          Hey Jiesen

                          Electron flow one direction and current flow in the opposite direction, I don’t understand?
                          Did Benjamin Franklin make a mistake?
                          No, it's just that when they assigned the arbitrary direction of current flow, they didn't know about electrons yet. So everything seems ass-backwards now. One other thing to make your head hurt when doing your EE work.

                          Comment

                          • JohnHenry
                            Senior Member
                            • Mar 2006
                            • 1020

                            #58
                            Originally posted by Lyehopper
                            When you start school, kingergarten is your first stop, right?.... Here's a place to start (kindergarten). Get yourself a subscription to IBD www.investors.com get the actual newspaper subscription. You can get it free for two weeks. Then subscribe for a year and they'll give a free book too. Ask them for the book "24 Essential Lessons for investment Success". Read this book and mark interesting points with a highlighter for future reference.... Now learn to use the paper. Read it cover to cover, DAILY. If you don't understand how to use a section just call IBD and bug them by asking tons of questions. Then learn how to use their website (avoid their forum, it sucks!).[/b]
                            I wan't able to buy IBD because I'm not 18 and do not have a credit card. My brother used his CC for me and we got a good deal from IBD. College student (my brother) rate of $149 per year. They wouldn't give us a book because we were already getting a deal they say. Oh I have been calling them asking loads of questions. lol they tell me to stop calling them and use the Q&A online. Thought I share with you guys.

                            Comment


                            • #59
                              Originally posted by StkyTreat
                              Oh I have been calling them asking loads of questions. lol they tell me to stop calling them and use the Q&A online. Thought I share with you guys.
                              Hehehe...squeeze every penny out of them!

                              Comment


                              • #60
                                Originally posted by StkyTreat
                                Since I was little my parents had drilled the suggestion of becoming an engineer in our heads. My mother’s side of the family comes from a line of six generations of engineers (industrial, civil, but most geological); my brother is the first electrical engineer (EE).

                                My brother first started as a civil engineering during his first two years in college and switched to EE during his third year because he said if mom wants me to be an engineer I’m going to pick the hardest discipline of the five and the job market for EE was HOT during his time.

                                Our mother told us, we all must go to college to learn to better ourselves. It doesn’t matter what subject we study as long as we are able to find job when we graduate. She did hint the top three professions were doctors (of course), attorneys, and engineers. I notice she didn’t say business.

                                My brother said of the three, becoming an engineer would be the best choice. Because an engineer can make a career change and become a doctor, an attorney, or a business man, but it is harder for a doctor, an attorney, or a business to becoming an engineer with a basic math background.

                                He could be wrong but it makes sense to me.

                                Anyway I notice he is never happy and always depress since he started engineering school and after graduating with no jobs so now he’s working on his master and will finished next semester.
                                If it is all about money and you do not mind being out to sea, then petroleum engineers are starting at around $65K this year.

                                Yet, you do realize it is all about rocks?

                                However, the money might be fun to think about, I have to agree pinky…I mean jiesen… go with what is interesting to you.
                                Last edited by Guest; 05-23-2006, 06:14 PM.

                                Comment

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