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  1. C

    Question: how come some low p/e stocks that maintain or grow earnings don’t produce anywhere near the results their p/e would suggest?

    @billcody I was confused in my use of book value term, but the principle still stands. In my country at least, assets very often have a different real value than their amortized value. It's not an accountability error here. Amortization is decided at the begining and is often much shorter than...
  2. C

    Question: how come some low p/e stocks that maintain or grow earnings don’t produce anywhere near the results their p/e would suggest?

    @billcody No. The price is what the market decides the price is. A building blowing up is not reflected in earnings. What's reflected in earnings is a building being amortized (the years following its purchase). So if you have a company that owns only 1 building that's worth 1 million, it's 30...
  3. C

    Question: how come some low p/e stocks that maintain or grow earnings don’t produce anywhere near the results their p/e would suggest?

    @billcody The company's book value and stock price are 2 different things. It's possible the company gains book value but stock price doesn't necessarily follow because people are not interested to buy the stock at higher price, can be for a lot of reasons (less expectations). So company earns...
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