Uvalde... I don't get the point of your last post. In what way are the largest companies selling for less than secondaries, P/E, P/S, or how? Raw dollars per share mean nothing without knowing the number of shares outstanding. According to Yahoo, CYMI has 29.5M shares outstanding, INTC has 6.72B, more than 200 times as many.
My view is that P/E's and P/S's don't mean much. Now, before I get destroyed with fundamental analysis, this is just strictly my opinion. I believe that numbers don't lie, but you can lie with numbers. All these ratio's as to whether a stock should be bought or sold do not make sense to me. It is just a marketing tool used by advisor's, financial planner's and such to sound important to the novice.
I used CYMI as an example to illustrate my warped view.
INTC has 33 billion in sales with profits of 6 billion. It's trailing P/E is about 18 or so.
CYMI has 370 million in sales with profits of 60 million. It's trailing P/E is 9 or 10?
Now, this is where the marketing comes in. A professional can tell you CYMI is the better value than Intel because it's P/E is lower than Intel's. Cymi's growth rate will be better than Intel because Cymer's a niche player and has less exposure to some of the problems that the big boy's are seeing. Sound's logical and truthful.
But just as you pointed out, CYMI has 29.5 million shares outstanding as opposed to INTC's 6 billion. IMO, most of the money is invested in IRA's, 401k's and alike. Institutions will have to buy the big liquid names again. They can't buy big blocks of CYMI like than can with INTC. They would own CYMI.
I look at it as, INTC has 20 times the sales, 100 times the earnings, but trades for about the same price of CYMI who has less liquidity, 20 times less revenues, 100 times less in earnings.
For me, INTC and the others that I've mentioned are the value stocks. I'm just going against the grain.
I'm not picking on CYMI per say. I'm just looking at it like, if I can buy the leaders in their industry at prices that smaller stocks are trading for, I'd rather buy the leaders.