I’m crazy…how crazy am I? Ask Patsy…she knows.
OK, NEM i believe is going to blow earnings out of the water (like a venezuelan drug boat making a run for Florida…but I digress). Here’s the basics..
Ok, PE currently of 18, dividend of a dollar….are there earnings growing at a higher level than the current PE? Glad you asked…look at the earnings estimates, which I believe are sandbagged.
Look at upcoming quarter…1.98 estimate (sandbagged) versus 1.40 last year, about 40% growth…
And look at next year’s sandbagged estimates…35% growth for next year…so even if PE stayed constant, you’d get 151 for a price…
No way the “new” growth stocks are going to have stagnant PE’s, will expand. Only sector with consistent earnings increases for the last 2 years. Oh, and you get a dividend, which will probably get larger if they don’t buy up companies bc they will have cash coming out of their butts…..socially awkward, but an interesting problem to have.


