No. of Recommendations: 6
Here we go again - another TMFGambit piece pining "effective yield."

Hey, I just thought of a new metric for making a sell-or-hold decision: the effective P/E. It is computed by dividing the price you payed for a stock by the current earnings (use the four most recently reported quarters). Of course, there is also a forward-effective-P/E, which is computed by dividing the price you payed for a stock by projected earnings for the next four quarters.

When considering this metric, you have to agree with me that there are some stocks out there that are sporting very attractive valuations. Or at least there would be if I had bought them earlier.

Dodging tomatoes,
Jon
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