Comments on: What does Hank know? http://ContrarianEdge.com/2008/01/22/what-does-hank-know/ Vitaliy Katsenelson blog on the economy, stock market, and stocks. Applying Active Value Investing approach. Fri, 18 May 2012 08:51:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Josh http://ContrarianEdge.com/2008/01/22/what-does-hank-know/comment-page-1/#comment-55365 Josh Mon, 11 Feb 2008 18:56:09 +0000 http://ContrarianEdge.com/2008/01/22/what-does-hank-know/#comment-55365 I hope AIG's "other" earnings can pass inspection by accountants.... I hope AIG’s “other” earnings can pass inspection by accountants….

]]> By: Vitaliy http://ContrarianEdge.com/2008/01/22/what-does-hank-know/comment-page-1/#comment-53561 Vitaliy Mon, 04 Feb 2008 04:22:24 +0000 http://ContrarianEdge.com/2008/01/22/what-does-hank-know/#comment-53561 Tom L Result is the same. I posted both GDP and GNP charts. Tom L

Result is the same. I posted both GDP and GNP charts.

]]> By: Tom L http://ContrarianEdge.com/2008/01/22/what-does-hank-know/comment-page-1/#comment-53557 Tom L Mon, 04 Feb 2008 03:51:22 +0000 http://ContrarianEdge.com/2008/01/22/what-does-hank-know/#comment-53557 Mr. Vitaliy, I read your Barrons article this weekend. I have a question. You use profits margins to normalize PEs. The measure you use for profit margins is margins as a percentage of GDP. Why don't you look at pre-tax profit margins (calibrated to revenue instead of GDP)? Why use U.S. GDP instead of global GDP? The conclusion probably won't change here but it is more accurate to look at pre-tax margins. Mr. Vitaliy, I read your Barrons article this weekend. I have a question.

You use profits margins to normalize PEs. The measure you use for profit margins is margins as a percentage of GDP. Why don’t you look at pre-tax profit margins (calibrated to revenue instead of GDP)? Why use U.S. GDP instead of global GDP?

The conclusion probably won’t change here but it is more accurate to look at pre-tax margins.

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