Just a little thing P:E ratio can mean billions of $$$

Discussion in 'Politics' started by healthmyths, Nov 12, 2012.

  1. healthmyths
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    healthmyths Gold Member Supporting Member

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    Liberals,Obama supporters continually amuse me with the naive and totally OBVIOUS ignorance of business, ratios, i.e. anything to do that requires more then taking their shoes off to count!!!

    For example, ALMOST ALL of them have obviously never heard of the Price to Earnings ratio one of several benchmarks used to buy or sell stocks.

    Now this little benign ratio is directly related to Obamacare, the hundreds of companies like Walmart that are reducing their operating costs by reducing their employee health care programs. Primarily due to what the experts, i.e. actuaries (again for you liberal/Obama neophytes actuaries calculate what the health insurance premiums will be) that premiums starting in 2013 will increase over next 5 years by 122% for the private health insurance policy holders. This ratio will mean employer insurance premiums will also climb.
    And so the financial people at public held companies like Walmart have to look at their operating costs going up and that is bad for the P:E ratio!

    See again for you totally ignorant liberal/Obamacare people..
    For example, if a company is currently trading at $43 a share and earnings over the last 12 months were $1.95 per share, the P/E ratio for the stock would be 22.05 ($43/$1.95).
    But if the earnings (due to increased costs, like Obamacare is projected to do...) decrease to $1.00 per share.. The ratio would be 43 ($43/$1.00).
    As a result someone looking to invest would have to invest $43 to earn $1.00 whereas with higher earnings of say $2.00 the ratio would be lower i.e. take less money to earn higher earnings.
    Price-Earnings Ratio (P/E Ratio) Definition | Investopedia

    Which means more expenses i.e. Obamacare means less earnings which means higher ratio which means value of share MUST decline!

    So tomorrow when the market opens on the bad news of millions of people watching their value of their 401Ks, or stock portfolios going down..down...down...
    just remember people all that gloating about Obama's win???
    I predict a market fall of over 200 points tomorrow close of DJI!
     
  2. bucs90
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    bucs90 Gold Member

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    Fuck you. Go to bed. You got money to earn for me tomorrow. I got bills bitch.
     
  3. healthmyths
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    healthmyths Gold Member Supporting Member

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    Just a note... European markets open in less then 4 hours folks...
    Let's see what Europeans think about DJIA future as it is going down
    Major U.S. Indices - Yahoo! Finance
    and we haven't even got to the "fiscal cliff" yet!
     
  4. francoHFW
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    francoHFW Platinum Member

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    Masscare proves you are brainwashed, Pub dupe/ Medicare Advantage sellout lol...
     
  5. francoHFW
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    francoHFW Platinum Member

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    Poorer workers are going to have some dignity, and health costs will go down. Too bad for greedy health care scam a-holes. HM (my initials), it will be no big problem for you. Remain calm. You are officially obsessed with fear mongering Pubcrappe.
     
  6. SniperFire
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    SniperFire Senior Member

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    Wow. That is fugly.

    Elections have consequences.
     
  7. SniperFire
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    SniperFire Senior Member

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    For all 29 hours a week they get to work.
     
  8. healthmyths
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    healthmyths Gold Member Supporting Member

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    So given your business acumen which is shown to be very little what would you suggest people that own stocks do?
    And by the way if you have a 401K this will directly AFFECT it as your funds will begin selling and then where will you go for retirement funding?
    SS? By the way again your business acumen is showing when these businesses decide to close up and take their money who pays the employee's
    payroll taxes? OH wait there won't be any more employers paying their 6.2% for SS 1.45% for Medicare!
    So again.. where will that money come from???

    See business haters like you don't seem to comprehend exactly what it costs to run a business and have employees.

    You've NEVER heard of FUTA have you. You never KNEW your employer also pays into YOUR SS/Medicare did you?

    Just wait till the other big shoe drops, Congress decides to disallow businesses from deducting employee insurance and pension payments a total
    of over $250 billion a year. That happens your health/your 401K will be dropped!
     
  9. SniperFire
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    SniperFire Senior Member

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    The indications are clearer now.

    Looks like we are heading for the exit:

    Wealthy Dump Assets Before the 'Fiscal Cliff' - U.S. Business News - CNBC
     
  10. blastoff
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    blastoff Undocumented Reg. User

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    Well I'm sure Truthmatters has now absorbed you lesson in P/E ratio and her portfolio is now poised to skyrocket. Thanks for helping her, and others, out.
     

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