tag:blogger.com,1999:blog-6616959642391988608.post1973363835755766974..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Corporate profits are impressive, but valuations are merely averageScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-6616959642391988608.post-2190472489849464832021-01-08T04:19:10.938-08:002021-01-08T04:19:10.938-08:00This comment has been removed by a blog administrator.Packers And Movers Bangalorehttps://www.blogger.com/profile/09038593101194558986noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-31458574936091900632017-04-05T01:15:42.433-07:002017-04-05T01:15:42.433-07:00Share price should depend on expected profits in t...Share price should depend on expected profits in the future, not profits in the past. eFinancial Modelshttps://www.blogger.com/profile/03292781057318475009noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-22670484561740584552015-12-06T15:41:57.582-08:002015-12-06T15:41:57.582-08:00David: It is certainly the case that corporations ...David: It is certainly the case that corporations have been investing an unusually small share of their profits. I've highlighted this in several posts (here's one: http://scottgrannis.blogspot.com/2014/02/business-investment-still-sluggish.html) over the years. Weak investment goes hand in hand with the sluggish recovery we've experienced. As for reasons, it's not hard to find a Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-46941413182303241032015-12-06T12:48:57.844-08:002015-12-06T12:48:57.844-08:00Does this hold any water, in your opinion?
Long t...Does this hold any water, in your opinion?<br /><br />Long term capital investment is not as strong as it has been historically. Corporations are essentially "bringing forward future earnings" by not investing long term. David Landyhttps://www.blogger.com/profile/10742466871155809382noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-77554782524167586002015-12-03T20:44:23.342-08:002015-12-03T20:44:23.342-08:00David: Here's how I see it. Corporate profits ...David: Here's how I see it. Corporate profits are in record territory relative to GDP, yet multiples are only a bit above average. I think globalization helps explain why profits are so strong, and I don't think that factor is going to fade. But the market is acting like it is almost sure that profits are going to mean revert to a much lower percentage of GDP, something I think is not Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-29362580275779706292015-12-03T17:24:54.628-08:002015-12-03T17:24:54.628-08:00Scott, you said: "Put another way, there is n...Scott, you said: "Put another way, there is no evidence here that equity valuations are in "bubble" territory."<br /><br />We're at about 18.7 PE as you cite in your article - slightly above average, but no big deal.<br /><br />But corporate profits are around 75% higher than the average (looking at your % of GDP chart for this).<br /><br />So if E in PE is normalized for David Landyhttps://www.blogger.com/profile/10742466871155809382noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-64806530852864997882015-12-01T03:52:43.029-08:002015-12-01T03:52:43.029-08:00This comment has been removed by the author.Williamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-29379560055893344092015-11-30T23:45:58.558-08:002015-11-30T23:45:58.558-08:00William/Scott: Yes, more non-GAAP reporting---the ...William/Scott: Yes, more non-GAAP reporting---the adjusted EPS---but pubcos also report GAAP. Many also report EBITDA.<br /><br />BTW, holding down profit as reported is a stronger dollar. Many public companies are reporting good gains in constant currency, but are forced to report lower gains in terms of dollars. <br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-17264514578346225872015-11-30T20:02:47.100-08:002015-11-30T20:02:47.100-08:00William: If a company were to use its earnings to ...William: If a company were to use its earnings to repurchase half its shares, the market would be crazy to not double the price of the shares, because EPS would also double. PE ratios and earnings yields, all else being equal, should therefore not be affected by share buybacks. PE ratios remain a valid source of valuation information even in the presence of massive buybacks. <br /><br />In any Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-12875453198364302492015-11-30T19:10:10.296-08:002015-11-30T19:10:10.296-08:00Scott - I have been a reader and an admirer of you...Scott - I have been a reader and an admirer of your blog for 5 years now. But you recently have been ignoring article after article regarding US S&P 500 profits. Such as the facts that a high percentage of such companies are reporting earning "X-items". In other words, the reported earning are not according to Generally Accepted Accounting Principles (GAAP). Market analysts and Williamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10888387650849987792015-11-30T18:46:07.340-08:002015-11-30T18:46:07.340-08:00Calculated Rish: After subprime collapse, nonbank ...Calculated Rish: <b>After subprime collapse, nonbank lenders again dominate riskier mortgages</b><br /><br />"So-called non-bank lenders are again dominating a riskier corner of the housing market — this time, loans insured by the Federal Housing Administration, aimed at first-time and bad-credit buyers. <b>Such lenders now control 64% of the market for FHA and similar Veterans Affairs loansWilliamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-50375157828525985972015-11-30T16:30:02.878-08:002015-11-30T16:30:02.878-08:00Excellent blogging...one quibble.
As I affix my c...Excellent blogging...one quibble.<br /><br />As I affix my cane and toupe, I remember the days when people bought stocks for the dividend.<br /><br />But dividends are more risky than legally contracted bond payments, on a particular company.<br /><br />Only after employees, vendors, creditors, bond holders, preferred shareholders are the dividends paid. Last in line!<br /><br />Back in the Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com