The plot has been lost with many US stocks trading in a massive bubble.
Take Amazon.com as an example.
After trading closed today it announced Quarter Sales up 28% to $29.1 Billion and Net income of $513 million in the first quarter, or $1.07 per diluted share .
As a result, in after hours trading Amazon.com has jumped US$75.75 to US$677.75 a share, giving it a market cap of over US$310 billion - on earnings of just US$513 million in a quarter. That's a PE of 150. Absolutely ridiculous - and a share price disaster waiting to happen. A still high PE of 30 would mean an 80% decline in its share price!
Many US stocks are trading in a world of their own ... completely divorced from rational investment reality, while by contrast many gold equities, despite the very positive move made this year remain way undervalued. Tell me any gold equity making solid profits that trades on a PE of 150 like Amazon.com!!!
A good summary of Amazon.com's quarterly is at http://www.publicnow.com/view/5303E42AA2B4FCA78481781528FE1BE3D9FBA7FA
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