Friday, October 3, 2008

Still Waiting

I suppose today we will find out if the so-called bailout bill passes the house. Either way, we are still in for a rocky ride as the market tries to find its footing in all of this mess. I still think there is real value out there, one just has to be careful and research their picks.

One way I find value is to look at a stock's P/E multiple to price. If a 18 dollar stock has a P/E of 6, then it is trading at 3X it's price to earnings ratio. Stocks with the lower multiple tend to be the best value. Anyway, expect a sharp rally when the bill passes. Have a good one.

- Roger

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