by, 4th-September-2007 at 09:20 PM (5492 Views)
It's always interesting to watch the market in action on an intraminute timescale, especially when the Lemming crowd come out to play. You can pick a stock where the fundamentals have changed very little from the last announcement yet the share price takes on a life of it's own based on herd mentality, greed or rumour?. Even more so when it's pushing the all time high record into blue sky.
For example, watching JBH today. Some brave Lemmings came out to chase the price to about $13.33 before reality stepped in and a sharp sell off ensued, but as a true test of bullish sentiment regained some of the loss to finish strongly.
Someone has done their sums and seem to think that the forward P/E's seem to justify the current record high sp, even with a current P/E of around 35. This cycle looks close to topping, looking a bit parabolic, maybe a short coming up.
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