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Author: chiefton Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3916  
Subject: Re: Price to Sales Info Date: 4/28/1999 12:25 PM
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Thanks TMFSelena,
I actually found the PSR in the workbook last night and got a good explanation from it. But I want to make sure I understand.

When companies have 0 or negative EPS, the PSR is handy to measure how the market values the stock. In your example, for every $1 MUSH makes in sales, it's really only worth 50 cents. Let me take another approach. Giddeup! (GDUP) has a PSR of 3.5, we like them, they're worth 3 and a half times their sales, MUSH is worth half. To me, it sounds like the higher the ratio, the better. However, your reply makes it sound that the lower the better. Is this becasue the Foolish eyes sees a potentioal for a quick turnaround?
If that's true, then I'm confused. To invest in a company with a low PSR seems to be like walking to the northern most part of Alaska in my Speedos! Thanks for your help.
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