high pe, page-4

Eltonmann - when looking at P/E ratios you will find different brokers/websites use different variations of the ratios. Some use a current year P/E while others look at next FY or the couple after.

Mermaid comes from a lowish earnings base compared with some of the bigger stocks so there is a greater level of volativity in the P/E ratio ie. a high P/E ratio this year could turn into a very low one if a companies earnings uplift is coming from a lower base.

Hope that makes sunse as to why some of the smaller companies have high P/E ratios.

When investing it can be a case of risk v return - if you want the great growth in share price like you believe to be the case in MRM (per previous posts) you will need to take a higher risk than say investing in a top 50 company.

I still think MRM is too much of your portfolio but you may be rewarded for this risk.....may.....

SLE