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17-04-2019, 05:39 PM
#7611
SUM share price just on 50% of the RYM shareprice
SUM valued about right v the gold standard
Just shows you that PE ratios aren’t a meaningful way of ‘valuing’ stocks in this sector.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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17-04-2019, 05:47 PM
#7612
Originally Posted by winner69
SUM share price just on 50% of the RYM shareprice
SUM valued about right v the gold standard
Just shows you that PE ratios aren’t a meaningful way of ‘valuing’ stocks in this sector.
Oh - No, how could you mix up "valuing" and "pricing"?
Market sets the price as it pleases. Price is what you pay.
Value is what you get (in this case with SUM a much nicer PE-ratio and much higher long term earnings).
I prefer value. A (sustainable) PE allows a quite good measure of the latter.
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
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18-04-2019, 09:10 AM
#7613
Originally Posted by BlackPeter
Oh - No, how could you mix up "valuing" and "pricing"?
Market sets the price as it pleases. Price is what you pay.
Value is what you get (in this case with SUM a much nicer PE-ratio and much higher long term earnings).
I prefer value. A (sustainable) PE allows a quite good measure of the latter.
As always you are right BP - the market sets the ‘price’ and ‘value’ is what you get
However ‘value’ is rather subjective and these days seems to be another word for ‘cheap’ or ‘undervalued’
So I got the words all mixed up (my bad) but what I was saying was that I think the current market ‘pricing’ of SUM around $6 is pretty spot on - if there is such a thing it’s about ‘correctly valued’ but not as the other meaning of ‘value’ implies ‘cheap’ at the moment.
I think PE ratios for retirement sector stocks are not appropriate for assessing ‘value’ - whether you are after an ‘intrinsic value’ or that subjective ‘value’ you talk about.
Like your term nicer PE-ratio .....conjures up a picture of a cuddly toy you want to cuddle.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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18-04-2019, 01:38 PM
#7614
Sorry to split hairs but it could be argued that the market "values" a company by setting a "price" from time to time. After all, where else does the commonly used term "market value" come from...………..
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18-04-2019, 02:20 PM
#7615
Originally Posted by macduffy
Sorry to split hairs but it could be argued that the market "values" a company by setting a "price" from time to time. After all, where else does the commonly used term "market value" come from...………..
So true mac,
I sometimes think ‘value’ is a comforting reassurance thing. Like for those who believe in ‘price is what you pay but value is what you get’ it’s like saying/reassuring themselves I’ve got SUM (as an example) at a cheap price ......and it’ll be all honky dory as the ‘value’ I’ve gotten will be unlocked in due course.
Always turns out that way.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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18-04-2019, 03:08 PM
#7616
Buying SUM shares for less than half RYM shares - Cunning !
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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18-04-2019, 03:10 PM
#7617
Originally Posted by Beagle
Buying SUM shares for less than half RYM shares - Cunning !
Seems a pretty fair price ...but that cunning?
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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18-04-2019, 03:54 PM
#7618
Originally Posted by winner69
Seems a pretty fair price ...but that cunning?
Ask the Gold standard man. He reckons normal range is 50-60% of RYM price with the mid point being 55%.
Anything under 50% is extremely unusual and a great buying opportunity.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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18-04-2019, 05:06 PM
#7619
Originally Posted by Beagle
Ask the Gold standard man. He reckons normal range is 50-60% of RYM price with the mid point being 55%.
Anything under 50% is extremely unusual and a great buying opportunity.
Since SUM floated average is 50.1% and has spent about half the time and most of the time has been between 40% and 60%
The SUM share price did spend a few months under 40% of RYM (when RYM was outrageously over priced / SUM under priced) and has spent a bit of time last year when SUM share price was over 60% of RYM (when SUM was totally over priced)
So SUM share price about right today v the gold standard.
Saying the gao between the two should close over the next year or two is a pipe dream eh Couts
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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18-04-2019, 05:10 PM
#7620
Last edited by Beagle; 18-04-2019 at 05:27 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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