The Motley Fool Discussion Boards
Investment Analysis Clubs / Foolish Collective
|Subject: Re: Selecting stocks the Ben Graham way||Date: 12/22/2004 11:06 AM|
|Author: StarryNightShade||Number: 35148 of 46866|
The following link is to an excerpt from a book called Exposing the Myths of "Can't Miss" Investment Strategies, by Aswath Damodaran. The excerpt explains why some or even many low PE / PB stocks deseve those low price - i.e. they have low growth potential or are high risk.
Clearly this appears to be the view of analysts for the two companies you mentioned. Unless you are fairly confident that the analysts are wrong these stocks would not be bargains. This is why many people combine fundamental analysis with things like Ben Graham criteria.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|