shorters, page-14

you can probably buy a takeaway shop at higher multiples than our beloved OZkebab!!! from AMP capital investors...

S&P/ASX 200 currently priced for 30% profit fall in 2008/2009, says AMP Capital Investors' Chief Economist, Shane Oliver. "The real risk for profits is that companies come out with subdued assessments for their 2008/2009 outlook. Therefore the consensus of analysts, which is for a 17% rise in profits for 2008/2009, will get revised down through the course of the profit season." But analyst downgrades are already expected by the market, since S&P/ASX 200 is trading on forecast PER of 10.8x versus 10-year average of 15.2x. "The market's either priced for a 30% slump in profits or it's great value," says Oliver. Implication is that, unless consensus shifts to 30% fall in 2008/2009 profits, S&P/ASX 200 will remain fundamentally cheap. Index last down 1.5% at 4849.7.