General comments/chat, page-37148

PE ratios are most useful on stable operations. Woolworths for example can be compared to coles. They will compete, and neither is likely to monopolize a stable market. If woolies is at 15 and coles drops to 12 PE then I'd likely shift my investment to coles.

Metals, minerals, Pharma are a different beast. CSL on a ratio of 100 at times. You can have a mining stock making money, on a PE ratio of 4, but if there are only 2 years of ore left you'd sell.

Really the PE ratio is just an average indicator, and it will be skewed to possible upside/downside. Company X makes 1c per share, and company Y makes 1c per share, PE of 20 and they are both worth $0.20. Add in CC as a maybe for co X that will increase the PE on X. Add stable demand growth with plenty of untapped resource potential then we adjust again.

HRM won't change this PE. It will be fixed profit, better free cash and therefore higher share price using said PE. Nor will cosmetics, if/when it happens it will be fixed - simple increasing earning and share price.

I'm guessing perhaps around the 10 to 12 PE, but that can easily be increased depending on what mister market anticipates what could be around the corner, good or bad. CC if it appears to come out successful, could double the PE ratio overnight, until it becomes a reality at which case it will be factored into revenue when earnings and stock price goes up and PE stabilizes to the norm.

Today we are yet to have revenue. Doesn't matter what the PE ratio is.

For sure, the next 12 months will be very interesting.