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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.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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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.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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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.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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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?
”When investors are euphoric, they are incapable of recognising euphoria itself “
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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
”When investors are euphoric, they are incapable of recognising euphoria itself “
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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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