Dragon123: as I'd asked, the meat of the matter is asking your stockbroker why OASIS was a good buy then; the answer will determine if broker's good on OASIS. And, remember, it's a double-edged strategy that may draw you some blood to give your stockbroker the sort of control you've hinted. Plus, you could learn more from the broker if attention is paid to the reason behind trades. I had a reason or two for buying OASIS; I won't claim they were the soundest of reasons, but I was well braced for a loss; that's why locking in profits is the next move.
Now, there's some danger in a simplistic interpretation of the meaning of a metric like the PE ratio. A low PE (for a stock within its industry), say, could have at least two interpretations: stock is relatively cheap and is a steal at current price, or, outlook/growth for stock isn't bright; same for a high PE. It is important to be able to figure what's happening. A single metric, plus (even) valid extrapolations of current PAT, say, may not capture all there is to make a sound decision.
Babs_O: your book-value-based system is good; but you didn't answer a question earlier asked (perhaps you missed it?): how do you estimate the "goodwill" component? Do you set it to zero?
Cheers.
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