Between 1923 and 1929, RCA’s stock price increased 939%. Many of the poor suckers who lost everything in the crash of 1929 were invested in RCA, on margin. In his book “My Life with Groucho” Groucho Marx’ son, Arthur, relates a conversation between Groucho and the manager of the Great Neck office of Newman Brothers & Worms (not making that up) that bears on RCA’s P/E ratio. Groucho and the manager are discussing the stupendous rise in RCA’s price, and Groucho asks, “how can it be selling for $535 a share and never declare a dividend? If a company’s sound and making money, it should declare a dividend once in a while. Doesn’t that seem strange to you?” “Don’t fight it,” the manager advises, “Just be assured that you’re going to wind up a very wealthy man.” Groucho, of course, lost his whole investment, and had to mortgage his house to cover his margin calls. Also, his suspicions about the RCA dividend were correct. RCA didn’t have much money per share to distribute to shareholders – it’s EPS was a modest $7.80 (that’s the answer to the quiz). Had Groucho known the P/E ratio, he might have found RCA overvalued.
Anymore multiple ID's today?
By the way, too bad you missed out on some great opportunities to make money over the last year.
Your Bad-My Gain.
"that's when those who are ignorant don't know they are ignorant"
he's an ignoramus in the purest form of the condition ....that's when those who are ignorant don't know they are ignorant, but rather think they are geniuses.....a condition that borders on stupidity.....
I know that, but it still doesn't tell me why he can't admit that he was wrong.
Nope-Nice another Multiple ID of yours is it not?
Guess you are on some Schizophrenic plan here at Yahoo.
By the way, I gave you guys the opportunities to make money in 2011 and you failed to profit from it.
Your bad-My GAIN.
So in other words this is one of your Multiple ID's once again.
I can see you do not want to address the issue.
Wrong about what? Huge gains shorting these markets and also the yield curve collapse-too bad you couldn't of taken advantage of those opportunities.
In terms of AAPL (cough-QCOM-2000), let's see if you're asking the question a year from now when these institutional funds and momentum traders try to exit through a very small door.