SD the price/earnings 39.70 and price/book 2.13 is too high for me to even think about touching it with a 10 foot pole. If you pay a premium that high, the earnings aren't going to get to you, because everyone is expecting it to be at the price you bought it for. The book value for SD is $2.98. The price is $6.98 right now. That is a bunch of risk to take. If something goes wrong, all the investors that inflated that stock too high are going to leave, causing big losses.
Last edited by Subterfuge : 06-01-2012 at 10:22 AM.