Base Counting Tutorial

[Mike]

I either annotate PE at the time of the first base breakout or look at the historical 4 quarters of EPS prior to the breakout and calculate PE. What works well however and fairly quickly is to archive electronic versions of IBD. I can open up the day of the breakout and just look up PE in the tables. I have eIBD going back 8+ years to January 2003.

[ericoleman]

Mike,

Thanks for the tutorial. There is a lot of useful information here to learn. One question - does the P/E expansion model similarly apply to cyclical and/or commodity stocks? I remember when US Steel, X, traded with a 7 p/e or so and close to $200 back in 08 (wow, that seems crazy now!). Thanks for all the lessons.

Best,
Eric