PE
PARSLEY ENERGY INC
stock NYSE

r/stocks where PE is the only number that matters

Been that way for at least 4 years. PE loves recurring revenue.

Subha hote hi mai PE sell kar dunga, tera fir profit ho jayega.

it's what I keep saying to myself, it seems so obvious... the real bubble isn't necessarily AI, but semis valuations are completely made up. Capex slowdown will blow up this. Eventually it will happen and PE doesn't matter in this case.

PE ratios are pretty much useless. Change my mind

If you’re confident the big hyperscalers are going to pull back spend, why not just buy them? They’re inexpensive based on their historical PE. Isn’t that the “easy money” for you?
It seems like you’re posting as if you are asking questions or soliciting information but challenging everything because you seem to have conviction about how it’ll play out. If you have that conviction, you’ve answered your question about where to put your money.

Lets be honest, if it's cheap there is always some sort of problem causing that.
There are at least two modes I use. Removal of a problem or future news. Future news is the hardest to judge and takes the longest.
One I used to use more often: There is a serious problem but will get resolved, there you get V shaped recovery.
An example was one stock there they were booking revenue from POs that weren't signed. Actually that's fraud. But I worked at the company that they sold a lot of there stuff to, the man in charge of buying told me that is what happened. Once it came out, the stock dropped from 20 > 4, but I knew the equipment was excellent. So followed the chart and bot when it did it's final leg down on high vol. Afterwards it went back up 4x.
But I had a huge advantage because I worked in the industry in a lab to evaluate new technology.
It's not always an advantage, my worst ever loss occurred because I knew the equipment this other company sold was the best in the world, but technically complicated and I maxed out my position using every margin trick I knew. Got crushed by a huge down turn and couldn't hold on. Actually went upside down by 60K, and that was 35 years ago. Mention complicated because most investor at the time wouldn't understand their advantage. The company is still around, it's CIEN.
Now days, it's not as easy.
Tend to look at new lows, then try and decipher why and what's going to change. Lows on many of those stocks are created by dilution. So need to judge if this is their last big dilution. If the stock is close to an all time low, I need to see insiders buying on the open market, not just exercising 0 cost stock options. And no selling near the lows. Sure, it can still work out, but not going to take that chance.
With biotechs it's binary and there's always a chance something bad happens, even if it can recover, you can get wiped out overnight, so no margin or leverage there.
The worst company I have ever seen for RS is TOPS.
If you add up the splits, it's 1/10,800,000,000.
Unbelievable, they should ban those type of companies. A chart will say that 1 share was $700 trillion in 2004. (Must have missed a 1:10 split somewhere)
TOPS
* **September 29, 2023:** 1-for-12
* **September 23, 2022:** 1-for-20
* **August 10, 2020:** 1-for-25
* **March 26, 2018**: 1-to-10 reverse split
* **October 6, 2017**: 1-to-2 reverse split
* **August 3, 2017**: 1-to-30 reverse split
* **June 23, 2017**: 1-to-15 reverse split
* **May 11, 2017**: 1-to-20 reverse split
* **February 22, 2016**: 1-to-10 reverse split
* **April 21, 2014**: 1-to-7 reverse split
* **June 24, 2011**: 1-to-10 reverse split
* **March 20, 2008**: 1-to-3 reverse split
I suppose you can make money by dancing in-between the splits, but screw that.
IMO some of the biggest negatives for reddit picks is current market cap/PE and failure to realise how long and how often a company will have to raise money before they really start making serious money. I think Reddit does fairly well analyzing technology.
BTW, looking at new lows is like diving into a garbage landfill looking for discarded gems, you have to hold your nose and try to not vomit.

PE is too high. Better off with AMAT OR LRCX…or even AMSL.

Here's the thing about BTC to my stock market brain. There's nothing to assess that speaks to the quality of the holding. It goes down if people sell it and it goes up if people buy it. That's it. Sure, stocks do the same. But they go up and down frequently because of some qualitative measure. Sales increased - it goes up. Profit went down, it goes down. You have PE ratios. Same store sales. Stock splits. IPOs. Capital spending. Inventory writedowns. Class action suits. Recalls. Drug approvals. Layoffs. SEC action on monopolies. Mergers. Acquisitions. New CEO's. Board votes. There is an endless amount of qualitative data upon which to base your research. With BTC there's nothing except up and down on the price. Maybe some legislative crap. And a bunch of bullshit about imaginary cycles (for such a short period of time that is essentially meaningless) and 'halvings' that really don't mean a damn thing. You used to be able to look at supply but these days that's old news. There is 95% of all the BTC there will ever be. Mining more does not meaningfully change the supply. This thing seems to run entirely on hopium and the lure of easy money because a few proles lucked out and got rich in the early days. There's nothing different about the thing you are buying today and the thing you bought five years ago but the price.

(Obviously kidding. MU has a forward PE of not even 7 right now and memory is what AI need to scale)

Took profits on HOOD...my guess it will ride the wave up until earnings and dump again. PE is looking high once again going into earnings. I think earnings will be a good surprise but the stock has been pumping too much imo. We will see though.

No not now too risky also too many safety concerns still... but PE ratio is good and the Dividened too. Price wise I think I will wait till it his around $175 to $200 maybe.

That forward PE assumes a lot of things the smart money knows won’t play out brother

AT A 6.8 FOWARD PE WHY IS IT DOWN 8.85%

A PE ratio is the result of a calculation from publicly disclosed data.
It doesn't depend on a judgement call, or a black box.

NGL I just did this with VZ and T today. I mean fuck it, 10 - 12 PE, 6%+ dividend, government protected oligopolies. These guys aren't going anywhere

It's easier to show than tell, but I'll do my best.
You start a company. After a few years, you need to get a loan from a bank. A couple of decades later, your company has grown to the point where you can now list on the S&P.
You're an investor and noticed this new company and want to know if you should invest in said company.
To do that, you hire a risk management company to pay a CFE to go into the company and do a financial deep dive.
The risk management company can't go into the company on behalf of an investor so, instead, we go in on behalf of the bank that has provided the loan.
I would be the CFE that worked at the risk management company that would go into the company lookig for the lies.
One point of data that we use in our assessment is called "ROP" (rate of productivity). It's "how much are you getting paid vs how much your labor is contributing to the profitablity of the company."
The result can tell us if the company could get into some financial trouble in the future.
Too low, and your experienced employees will be looking for another job. Too high, you will end up having to pay more, thus your profits will drop.
Those high and low limites are outside of acceptable limits, but inside possible fraud limits.
What raises "red flags" for us is getting the same productivity out of a senior sales person getting paid $250,000/yr as you are out of the new sales person making $65,000/yr.
Either your Senior Sales Person is not being productive with their time or someone is fudging the numbers for the new hire.
Anyway, I collect all of the data, return an ROP for the company and turn that in to my company. My company will take my data, as well as the data collected by my colleagues, and provide an honest assessment too the investor.
So the numbers that you end up seeing (EP or PE) are not the raw numbers. The numbers you see have been put through a grinder, picked through and discarded by the financial analysts that the company I worked for sold our analysis too after the investor that hired us made their decision.
That why I say "it's not reality" - it's missing too much of the original data to make even an educated guess.

That doesn't matter anymore. Compare PE of MU to SPCX/TSLA. Google PE compared to Costco/Walmart. Fucking PTLR.
Look at ASTS.... perfect example of how the stock market prices in FUTURE earning potential, not current earnings. And moat... building a rocket company to compete with RKLB is hard.
I think RKLB valuation is pretty lofty, I'm not a fanboy. But ain't no one using the dividend discount valuation model anymore 🤣

The forward PE is more like 18. There are signs that the "bottleneck" is overstated, especially with META's announcement. The re-rate will consider that and rate it down not up. Apple already looking at Chinese memory to stop MU/SK/Samsung from price gouging.

AMD PE has been incorrect for a long time. The Xilinx acquisition skews it