I'll preface this thread by saying I know exactly jack squat about trading. Ok.
I think I understand P.E. That means the stock price is some fraction of what the company earns per stock, right?
I was told that P.E. is one of the most important things to consider when buying stocks, which I understand because if the price of the stock is high and the earnings low, so far the company has not really justified, or lived up to as yet, the price of the stock, yes?
So, Im thinking of buying a company (look)Nasdaq, I don't see any P.E. not sure why. I know the company is profitable because Ive read the financials. I like the company because they are somewhat in the same game as google which trades for around $200. They are in the search engine/ pay by the click advertising business which I personally have been using since http://www.goto.com started years ago. Goto was later bought by overture.com who was bought out recently by Yahoo. I watched overture stock go up and up and up but never had any money to invest. Anyone who has ever used a pay-per-click service knows the concept is great.
Interchange (incx) actually provides the pay-per-click service for "look" and I like their stock also.
Anybody care to analyse this?
By the way if anyone is rich enough to own google, I predict they are going down big time in the future, their format is inferior to overture/yahoo and competitors are going to eat their marketshare eventually? JMH uneducated O.
[Edited by cool-in-cayman on 04-22-2005 at 07:14 PM]