qantas article: bearish and rightly so, page-2

Everyone is looking at growth stocks. However many of these growth stocks with PE ratios of 30 or more are extremely speculative. For example BKL has a profit of 17 million for the 1st quarter with a market cap of 1.9 billion. Qan has a profit of 850 million for the 1st half and a PE of 6 a market cap of 6 billion. Will BKL ever make 1/3rd of 850 million per half year? I think not. The reality is that lots of stocks on the ASX are grossly overvalued and QAN isn't. Do I expect QAN to continue making profits exceeding a billion dollars a year for the next couple of years. Yes. Do I expect BKL to grow profits 1000% to even come close to QAN in value. Nope. So I put my money in a company which will continue to have superb cash flow and let others speculate. You could pick pretty much any company in the ASX and do a comparison and I don't think you will find better value for money.