ECONOMISTS? HA! Who needs them or any so called experts?

Discussion in 'Economy' started by Neubarth, May 26, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    I have no truk with Economists. One half always disagrees with the other half. This school of thought says that THAT school of though is CRAZY. And that school of thought says that THIS school of thought is CRAZY. COULD IT BE THAT BOTH OF THEM ARE CRAZY AT LEAST HALF OF THE TIME. If so, at what time do you listen to them? If you do listen to them, do you base your investments on what they are saying? I don't and just go with momentum as I have posted many a time on this forum.

    How about stock investors. Let's just take a look at AA. No, that is not American Airlines. It is Alcoa Aluminum, a company that as of late only loses money.

    Alcoa's first-quarter loss narrowed 60% to $201 million, or 19 cents, from the year-earlier loss. Revenue grew 18%. The operating margin turned positive. Alcoa has $1.3 billion of cash and $9.8 billion of debt, equal to a debt-to-equity ratio of 0.8.

    Stock: Alcoa has advanced 27% during the past year, outpacing the Dow. It trades at a price-to-projected-earnings ratio of 9.8 and a price-to-book ratio of 0.9, 29% and 69% discounts to peer averages. It's also cheap based on sales and cash flow.

    Consensus: Of analysts covering Alcoa, eight, or 40%, advise purchasing its shares, 10 recommend holding and two suggest selling them. Morgan Stanley (NYSE: MS - News) expects the stock to double to $22. Credit Suisse (NYSE: CS - News) sees it climbing 75% to $18.


    ARE YOU AMUSED? DO YOU TRUST ANALYSTS? SHOULD YOU TRUST ANALYSTS?
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    So, tell us what school of economic theory you subscribe to and let us know how they are doing. This should be interesting. My guess nobody would be willing to make a fool of their selves on this forum, so will not put their neck out. Some Radical Islamic just might not be able to withstand the temptation. Heads do roll in Islamic countries, you know.
     

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