When the Price is Right

2009-12-14

Due to the recent recession, everyone is looking for a deal. This has actually been good news for certain companies. In the long run, at least a business cycle (3-5 years), the rate of earnings growth is important. A fast growing company will command a higher valuation than a slower growing company.

Today’s video looks at a fast growing business that is prospering in the weak economy.
Best when viewed in full youtube screen.

Just because one company trades at a lower PE ratio than another does not necessarily mean it’s cheaper. It all depends on the growth rate.

Disclosure: Author Manages Portfolios Long PCLN

The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.

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