Edn - 24,000 Pe?

Discussion in 'Stocks' started by Sikhinvestor, Oct 28, 2007.

  1. How can this stock have such a high PE like that? Do you think this should be shorted?

    Sikh Investor
  2. It is not always necessary for companies to report earnings for the stock price to increase. For example, bigcharts.com shows Google Inc. stock symbol GOOG trading at about $ 100 / share no earnings about August 2004. GOOG last closing price 26 October 2007 is about $ 675 / share.

    Some companies may have no earnings yet the business is sound. For example, pharmaceutical companies may have a terrific new drug that passes all clinical tests but can not be sold until USA Food And Drug Administration (FDA) approves. The pharmaceutical companies' stock price may increase but there are no sales and no earnings. If FDA approves, then big earnings may appear.

    Finance.google.com describes EDENOR S.A. (ADR) (Public, NYSE:EDN) as an electric power distribution company in Argentina.