tag:blogger.com,1999:blog-7294165939647321702.post6438378019253034513..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Earnings PopsSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7294165939647321702.post-57284417584527948222009-11-03T15:14:21.902-05:002009-11-03T15:14:21.902-05:00Hi Davis,
It would be nice indeed if the P/E mult...Hi Davis,<br /><br />It would be nice indeed if the P/E multiple was cheap (it is 17) using this quarter's run-rate, but that might be asking too much. The last three quarters haven't been great, but the fourth quarter "ago" was fairly strong, so I understand what you're saying. However, analyzing a company's earnings based on just one quarter, and its worst one at that, rather than trying to estimate the company's normalized long-term earnings going forward, may leave a lot of opportunities on the table.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-80894813606939523992009-11-03T11:01:43.203-05:002009-11-03T11:01:43.203-05:00Hi Saj - I appreciate your blog and enjoy reading ...Hi Saj - I appreciate your blog and enjoy reading it. In this post, you mention that CAM is trading at PE a discount based on "trough" earnings, but cite those earnings at TTM rather than a run-rate based on the recent quarter. How do you think about the difference? I think ideally the company would trade at low multiples using the run-rate financials rather than TTM as those TTM numbers include some great quarters. I worry that using multiples calculated on TTM are artificially low, and would be higher if the forward few quarters are like the last two. <br /><br />ThanksDavishttps://www.blogger.com/profile/15741421538751587510noreply@blogger.com