“I wouldn’t go near this with YOUR money.”
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 19 October 2020
⏱️ 17 minutes
🧾️ Download transcript
Summary
Solar energy stocks have been on a tear, but is now the time to buy? What happens to the ever-popular PE Ratio if a company’s profits don’t exist? Jim Gillies tackles those questions and shares what he’s watching this earnings season.
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Transcript
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| 0:00.0 | It's Monday, October 19th. |
| 0:04.3 | Welcome to Market Foolery. |
| 0:05.3 | I'm Chris Hill. |
| 0:06.8 | The Public Safety Minister of Canada says that the U.S. Canada border is closed to all |
| 0:11.8 | non-essential travel until November 21st. So joining me from his |
| 0:17.0 | home in the province of Ontario in the city of Guelph, it's Jim Gillies. Good to see you |
| 0:21.9 | my friend. |
| 0:22.6 | Good to be seen. |
| 0:23.8 | I always feel like seeing you is essential, but look I'm not going to argue with the |
| 0:27.4 | Public Safety Minister of Canada. |
| 0:31.2 | Investing in solar energy, that is a topic we're going to hit today. We're going to do a little bit of an earnings preview as earnings season starts to kick off this week. |
| 0:41.0 | Let's dip into the full mailbag. |
| 0:43.1 | Market Foolery at fool.com is our email address. |
| 0:47.6 | Great nuts and bolts question from Isaac Hemingway |
| 0:50.3 | who writes, I was just wondering |
| 0:51.6 | how you calculate a company's PE ratio when the company's net income is negative, is it even possible to calculate? |
| 0:59.0 | Thank you for that, Isaac. For those unfamiliar, the PE ratio, the price to earnings ratio, maybe the most often |
| 1:07.0 | look to ratio when it comes to investing, as we've talked about before, Jim, not always the best one to look at depending on what |
| 1:15.1 | industry you're investing into what company you're looking at but to Isaac's |
| 1:19.8 | question what do you do when there's no earnings per se? |
| 1:25.0 | Well, the answer, and Isaac it's a great question and you're going to allow me to get my investing |
| 1:30.5 | valuation wonkiness on here. The answer is you get a negative number, a negative PE ratio. |
... |
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