I'm glad to write you about the investigation that I recently made since I have obtained the title of Specialist in Financial Markets Analysis.
I was recently looking for some cheap firms. The multiples that I was looking for was the Price to Earnings Ratio. This is calculated by dividing the Price of the Share by the Earnings per share. The rationale of this ratio is to know how much am I paying for a dollar of benefits of that firm.
The 10 cheapest firms or the top 10 low per of the world are the following:
1- Berkshire Hathaway Inc. - per 0,20
2- Pacific Capital Bankcorp - per 0,25
3- AbitibitiBowater Inc. - per 0,55
4- Newcastle Investment corp - per 0,55
5- Brookfield Residential Properties Inc. - per 1,17
6- Six Flags Entertainment Corp - per 1,42
7- ReneSola Ltd. - per 1,58
8- LDK Solar Company Ltd. - per 2
9- Central Fund of Canada Limited - per 2
10- Revlon, Inc. - per 2,30
With a Combination of Technical Analysis we could try to see the optimal point of entrance in order to minimize losses and maximize profits.
Here there is one recommendation: Berkshire - optimal point of entrance 70. Stop loss 67,80. If Stop Loss is executed, next entry point should be at 66 with stoploss at 64,50. The Stop Profit should be at 87 althought you should be taking part of your earnings at 78, 82 and 85 and never take everything out, you should put a trailing stop of 1 dollar movement once it arrives at 87.
Do not hesitate to write me an email or post a comment on the blog asking for any firm recommendation you may have!
I wish this information is useful for you!
Marc Ramon Hernández
