GhostaYou are demonstrating that a pe ratio of say 10:1 would...

Ghosta

You are demonstrating that a pe ratio of say 10:1 would indicate a growth of 10% on your investent. bhp has a low pe because of size - blue chip nature of share has lower growth unless Ravensthorpe came on line then pe would increase dramatically for bhp? Of course.

Emerging companies like agm have a lower sp and a much higher pe ratio - much more potential growth in the short term. smy and mcr may have already reached their peak - smart invester puts smy at 23 - a predicted return of 23%.

It puts agm as having a very high pe ratio - 83:2 or approximately 40%. 83 to 2 is 83 divided by 2.

In other words smart investor predict a 40% growth on your investment at this stage. For an invester coming in now at around $1, they predict a share price of around $1.40.

Precisely where Fox Davies does. At this point in term and information.