Glen Doth Know

Looking at the numbers, I started with a net input of about $89K I rode that up about 20% --- and then recieved knock out blows into and through "Black October." I cut out my Trailing stops and rode my portfolio down to $55K (down 40% from the start and probably down about 50% from the peak). Throughout the whole thing, I shifted assets into my positions that were plummeting the fastest --- and I began buying January 2010 Calls in the accounts that I could when my dad and friends were telling me I was an idiot. That's what I've been doing. If I wasn't playing with college money and my investors accounts were set up to margin and buy calls, I'd have leveraged up more --- for better or worse.

"Shoulda-Coulda-Woulda" --- That's the call of wussies. At least I actually did it.

Now that I have experienced this kind of drop first hand... I plan on actually selling stocks when there's lots of negative outlook and monster selloffs early on... and waiting for better prices --- even for ridiculously undervalued priced stocks like mine.

Labels: AOB, BEAV, CEDC, NDAQ

Q:

By:jkosinsky


Date: 08/27/08

Comment continued:
NDAQ one time annual reduction of P/E from sale of LSE.
Please reply.
JK

A:

Hey jkosinsky,

I looked into it. NDAQ is one of those stocks that's difficult to look into because when you search the ticker, it loads up bunches and bunches of trivial information that I really could care less about, such as who is ringing the opening bell, etc. I try to keep very little tabs on this one. Here's an article that I think refers to what you were pointing out: http://seekingalpha.com/article/26885-nasdaq-triples-earnings-on-one-time-charge-eps-in-line

Alright. I looked at it. There was a huge increase in the EPS. Yeah, looks like you're right. The good news is that it doesn't change my opinion on the company. It looks like a lot of the sites I reference quickly like http://investing.businessweek.com/ take out these one-time issues so that their data is more linear too. Good Catch. If you look at the picture for this article, you're right. That clears it up for me. Thanks!

Verdict: The PE ratio really is 8.47. This PE ratio includes a one time huge EPS that deflates what the PE ratio actually should be in my opinion. A realistic PE for this type of growing company to me equates 4x the last EPS to the price, resulting in a PE of 17.01. That said, it's still a bargain.

Glen

Labels: NDAQ