Ask Colin

You discussed XXX (code disguised) in a column. It has a high dividend Yield, but no PE ratio. How did you identify it?

I find stocks by scanning the fundamental ratios. I then check the chart out. I also find them by looking through the charts for the value model or the growth model breakouts. I then check the fundamental ratios. I found XXX from its chart.

XXX made a loss in the last half year after five profitable, but erratic half years as you could research on the ninemsn web site - Finance page. The chart could be interpreted as suggesting that the market sees the loss as one-off (it may have been only a paper loss - it is maintainable earning that are important - but I have not researched that yet myself).

I think this is a good example of where just scanning the data does not tell you the full story. The dividend yield was interesting on its own, which might lead us to look further at why there was no PE ratio. Companies sometimes pay dividends even when there are no current profits to hide problems. However, other times it is only because the loss was a write down of assets or something like that and the underlying business is OK.

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