PE ratio

picking of Low Pe stock. :-

GEARING = Asset vs Debt

Gearing below 0.5 ( U hv cash $1.00 vs debt of 0.50 )is considered healthy

0.5 to 0.8 ( Cash 1.00 vs debt of 0.50 to 0.80 ) considered normal n acceptable

U should avoid Low PE stock which gearing exceeded 1 !

gearing exceeded 1 means u hv $1.00 but u hv debt more than $1.00

One classical example := Megan

Megan was once stood at PE 2+ (50% return per annum ), in d same time its gearing almost touching 2, in short :- they hv one dollar in hand n also 2 dollars in debt .

If u r not from accounting back ground to find out what is its gearing stand from balance sheet, u can either find it from osk data base or the edge .

FYI, Plenitude is one of d million that having gearing of ZERO ! Low PE(7) plus high NTA >5.00 ( its current NTA 3.20 was calculated in year 2000, by now it should worth >5.00 at least ) ^V^