这不是工业的年代

在10多20年前当我还是 “小时候” 的年代，总不难免听到这一句话：

“用心学习吧， 将来能够找到一份好工， 要升职加薪也比较容易”

在那时候， 觉得这句话没错。 如果大家有看以前的港产片 （许冠文。。的那一种）， “有读书”的高材生永远好像打工皇帝一样， 愚弄下属之余还让老板忌他三分。 而且还驾着跑车。。。

但，现在还是如此吗？

“一颗石头往街上丢会打中三个大学生” - 相信大家也听过吧. 现在, 所谓的高才生满街都是. 而且刚毕业到社会做工的 Fresh Grade , 工钱才一千多到两千不等 (以马币计算). 那么所谓的 "用心学习" 真的找到好工吗?

相信已经有答案了, 因为 "这不是工业的年代" !

EPS and PE

This post, i will discuss about EPS (Earnings Per Share) and how EPS affect PE.

EPS are the earnings returned on the initial investment amount. The basic formula to get the EPS are:

EPS (Earnings Per Share) = Profit/Weighted Average Common Shares

PE are the formula to estimate the time (year) on getting back the capital. Investor need to know the share price and EPS to get the PE. The formula are:

PE = Price/Earnings Per Share (EPS)


Let's work out the formula and see the example below and you will know how PE help us on share invest.

Company ABC

January
Share Price = RM1.50
EPS = RM0.15
PE = RM1.50/RM0.45 = 3.33 (Years) ~ 3 years and 4 months.

June
Share Price = RM3.50 (Share price on ABC company has been increase for RM2.00)
EPS = RM0.15
PE = RM3.50/RM0.15 = 23.33 (Years) ~ 23 years and 4 months.

So, can you see the difference now? 3.33 years VS 23.33 Years. In the mean time, the lower amount of PE, the faster earn back you initial capital. But:

1: Why some share doesn't have PE in their annual report?
-If the company is facing financial problem. EPS less or equal 0.
-It's a new share in market. Insufficient information on EPS.

2: Why the amount of PE is a huge number
- From the example above (ABC Company - June), The share price are getting too high but the Earn Per Share (EPS) are too low or nothing changes.

So, for the new share investor. This is a simple formula to judge the "Safe" blue chip share.