Thu, Aug 21, 2014, 10:17 PM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Petr Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • fstout57 fstout57 Mar 19, 2012 8:58 PM Flag

    COP-XOM-Chevron

    Musket-One last comment to your rude reply. I listed all 4 PE's of each stock. I never buy a stock with a PE over 10. All the info I posted was to compare the PE's, market caps, and price per share. Guess you couldn't wait to post your BLAH-BLAH-BLAH fast enough to do an analysis of each.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • <All the info I posted was to compare the PE's, market caps, and price per share.>

      And why would you compare price per share? That is an amateur move and what Musk is knocking you for.

      <I never buy a stock with a PE over 10.>

      Another silly comment. The yield on a stock should be compared to the safest investments there are, government bonds. Sure, it doesn't make sense to buy a stock with a PE of 10 when government bonds are yielding 10%, but why wouldn't you buy a stock with a PE of 20 (5% effective yield) when bonds are yielding 2%. And what earnings are you talking about (projected or real)?

      And your comparing PBR to XOM is equally foolish because you are comparing an American PE to a Brazilian one.

      http://www.bloomberg.com/markets/rates-bonds/government-bonds/brazil/

      Now you want to tell me why anyone in Brazil would buy PBR over buying government bonds? You can get your 10% yield in a much safer bond than stock.

      PBR has historically sold at a discount to XOM on a PE basis and SHOULD sell for a discount. PBR sells 74% of its oil at a fixed rate, loses money on all the natural gas it sells, has higher borrowing costs, is a play on exchange rates which implies more risk, and is controlled by the Brazilian government which has and will be using PBR as its own personal piggy bank.

      Comparing PBR to XOM is like comparing an orange to a tangerine.

      • 1 Reply to docjoe999
      • <<And your comparing PBR to XOM is equally foolish because you are comparing an American PE to a Brazilian one.>>

        <<PBR has historically sold at a discount to XOM on a PE basis and SHOULD sell for a discount. PBR sells 74% of its oil at a fixed rate, loses money on all the natural gas it sells, has higher borrowing costs>>

        Yet PBR has better net, gross, and operating margins in spite of those challenges???

        How do they do it???

        Twice the net profit margin and much better gross margins.

        See here:

        http://www.google.ca/finance?q=pbr#

        Thing is, as PBR grows into it's larger skin(ie market cap), those higher margins do great things to the bottom line and PE ratio.

        XOM has to generate twice the sales revenues of PBR to generate the same bottom line.

        And if these fundamentals mean anything, PBR will wax the crap out of XOM over the long haul.

        No contest.lol

        The Brazilian govt has PBR shareholders backs and XOM's RLI is nearing 50% NG reserves and that's not because they choose to.

        XOM will be sucking wind like all the supermajors within the next 10 years and PBR will just be getting its second wind.

    • *Musket-One last comment to your rude reply.* My post was not rude. It offered solid, much needed, real-world, advice... without sugar-coating.

      *I listed all 4 PE's of each stock. I never buy a stock with a PE over 10.* You are sorely trying my ability to be nice... If a stock was growing earnings at 30, 40 or 100% why would you not want to buy it despite a PE of, say 15?

      *All the info I posted was to compare the PE's, market caps, and price per share. Guess you couldn't wait to post your BLAH-BLAH-BLAH fast enough to do an analysis of each.* You compared the wrong variable. I tried to explain and gave a slightly more detailed analysis comparing PBR and AAPL. This was not Blah-Blah, it was elementary stock analysis which you need to study a bit more to be credible.

      fstout, I cannot be nicer than to, again, offer you some friendly advice: You have the interest and ability, now go learn something about what you are talking about.

    • If you are buying stocks based only or mostly on PE you are missing it. There is more to stock picking than PE.

 
PBR
17.73+0.05(+0.28%)Aug 21 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.