STOCKS ARE STILL CHEAP despite market run up
If any one is taking money off the table because the market run up consider the vaulations on some of these stocks
JNJ- $62.17 PE of 13.57 Forward PE of 12.64 1/13.57 IS A 7.37% YEILD ON YOUR STOCK BOND. JNJ ROE has averaged at least 25% year over year for last 10 years PE 01/00 was 33.8
now image if that PE was what it is now and the PE never changes... in 2000 earnings per share $1.39 times 13.57= $18.86 now at the same PE in 2009 it trades at $62.17 that would have been 3.29 times your money in ten years thats not even adding in dividends. OK the growth might not be as robust these next 10 years but with ROE at 25% 30.5% last year i have a great deal of confidence the next 10 will be pretty darn good. And dont worry price has to go up lets say it did trade at $18.86 in 2000 and it still traded at $18.86 today.... earning $4.57 a share that means your stock yeild would be a wopping 24.3% ........image that return on your money.... and u might say well i cant get it at $18.68 in 2000.... well if u buy it today at 62.17... U ARE!!!!! wait 10 years to sell and reap the rewards(money without work)
Do the work on WMT-same thing.... Buffet is buying, ARE YOU?
Buy the VERY BEST and dont mess around with lesser companies