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 Posted: Sun, Oct 21 2007, 7:34 pm EDT Post subject: Risk Vs. Uncertainty |
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An interesting article about stock market:
Risk Vs. Uncertainty
Date: Friday , February 01, 2002
Wall Street loves consistency and certainty about the future prospects of any business, and will usually over-reward for certainty. Just look at the market valuation of Automatic Data Processing (ADP) or its cousin Paychex (PAYX). ADP trades at a lofty trailing P/E of more than 40 while PAYX has a P/E of 49! ADP has a record of meeting or beating Street expectations and consistently rising dividends and earnings for more than 40 years. There are very few businesses that can claim a record of no major blimps in their operations for such a long period of time.
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http://www.siliconindia.com/magazine/printarticle.php/CRD540539097 |
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