if be interested to learn a little more about the PEG ratio if you have time to share. I might make it my weekend research to read up on it more widely.
Or any contributions from others with great experience on this thread. Nice weekend topic to learn something.
Briefly:
1) I'm pretty used to having an immediate view of what a P/E ratio means in terms of if a company is cheaply valued (value investing), e.g RCR is currently at about 5, I would consider that good value for a company with solid 10 year earnings growth, or alternatively a P/E which is expensive (expectstions of high growth) e.g 25-30, with the asx top 20 like banks being a stable barometer somewhere in the middle
A lot of growth stocks fall so far outside the normal ranges you can't use P/E at all
2) what PEG ratios would be 'good' or 'bad', ie what's the range you look for to trigger potential investment
3) what time period do you assess? It must vary a lot from year to year, is it worth doing a 2/3 year average, or does PEG not work that way
4) a lot of the tips on STT are mining related which is understandable, personally I find the high growth stocks more interesting nowadays which could be good for multi year holds if they work out well and keep growing. These can either go great or terribly also
E.g GOOD - I was spruking MNF to anyone who would listen at 20c, now 20 bagger
E.g. BAD - I was doing same with QFX, now minus 2000 + bagger seems like (to any pedants out there I know you can actually only lose 1 bag, but it has had a stellar multi run down the toilet.)
As an aside I pretty much keep my opinions to myself now except on here.
Hence finally I'd be very interested to hear anyone's views on great micro/smsll cap GROWTH stock suggestions. was pretty happy to see NWZ, CL8 and CM8 in FF top 5 for 1 thousand each portfolio but I'm sure there are more out there I'm not aware of.
I only found those three though by following quality posters off other threads to see what else they are interested in to give me some initial targets to say researching myself. Having said that you also find a lot of rubbish that way and some very clever people seem very keen on stocks I wouldn't touch. Maybe due to lack of understanding. Hence back to trying to learn more about the science of valuing growth, PEG ratio, and current stock selections based on this. any contributions to this topic most welcome.
