marching out of step, page-5

Parrot - I only stated what I believe to be the facts. Like it or not the market doesn't pay up for a company whose earnings are forecast to decline. The market pays for growth. I am not making any comment on the merits of ARQ - just stating what the market believes to be the outlook and how it often works. Added to this there are oilers with very very good growth outlooks - OSH, AWE, BPT etc... etc... so this is where the money goes.

Here is a link for you - that explains the characteristics of the best stocks in history and based on this and my own experience I never saw a long term uptrend in a stock with declining earnings and/or forecast to decline - even if they do make a lot of money now - it is GROWTH that matters. Look at Telstra - they make buckets of money but earnings have been flat for years and relative to inflation over 5 years that is actually a marked reduction in their earnings.

Here is the link below - well worth a look - changed the way I looked at things a few years ago.

all the best

www.investors.com