What is meant by a negative (minus) PE Ratio on a stock?

 We asked ChatGPT this question:  Here is the answer!

A negative price-to-earnings (PE) ratio typically occurs when a company has negative earnings, meaning it is experiencing a net loss rather than a profit. The PE ratio is calculated by dividing the market price per share by the earnings per share (EPS). When the EPS is negative, the resulting PE ratio also becomes negative.

Here’s a more detailed explanation:

1. PE Ratio Calculation: The formula for the PE ratio is:

   $$\text{PE Ratio} = \frac{\text{Market Price per Share}}{\text{Earnings per Share (EPS)}}$$

2. Negative Earnings: If a company's earnings (EPS) are negative, the denominator in the PE ratio formula is negative. For example, if a company's market price per share is $50, and its EPS is -$5, the PE ratio would be:

   $$\text{PE Ratio} = \frac{50}{-5} = -10$$

3. Interpretation: A negative PE ratio indicates that the company is not currently profitable. This situation can arise for various reasons, including high startup costs, research and development expenses, or economic downturns affecting sales and revenues.

4. Investor Perspective: Investors may view a negative PE ratio as a sign of financial trouble. However, it’s essential to consider the context. For instance, many high-growth companies in their early stages may have negative earnings due to significant investments in growth and expansion. Investors might still find these companies attractive if they believe in the long-term potential.

In summary, a negative PE ratio means the company is losing money. Investors should look beyond the negative PE ratio and analyze the underlying reasons for the losses and the company’s future potential before making investment decisions.

For further details, you can refer to these sources:

• Investopedia on PE Ratio
• The Motley Fool on Negative PE Ratios

Recent advancements in Synthetic Biology or SynBio as Ai Tech begins to move the science forward faster!

 

Here are five significant advancements in synthetic biology:

CRISPR-Cas9: This powerful genome editing tool allows scientists to make precise changes to DNA sequences in living organisms. It has revolutionized genetic engineering and holds enormous potential for developing new treatments for genetic diseases. DNA Synthesis: Advances in DNA synthesis technology have made it easier and cheaper to create custom DNA sequences. Researchers can now design and assemble synthetic genes more efficiently, enabling innovative applications in fields like medicine, agriculture, and biotechnology.

Directed Evolution:

This technique mimics natural evolution in the lab. By introducing mutations into genes and selecting for desired traits, scientists can engineer proteins with improved properties. Directed evolution has led to the creation of enzymes, antibodies, and other biomolecules with enhanced functions. Synthetic Cells: Researchers have made significant progress in constructing artificial cells from scratch. These synthetic cells can perform specific functions, such as producing biofuels or sensing environmental changes. The field of synthetic cell biology aims to create minimal cells with simplified genomes, shedding light on the fundamental principles of life. Metabolic Engineering: Metabolic pathways within cells determine how they process nutrients and produce energy. Synthetic biologists manipulate these pathways to optimize cellular behavior. For example, they can engineer microbes to produce bio-based chemicals, pharmaceuticals, or biofuels more efficiently. These innovations are driving synthetic biology forward, transforming how we produce food, energy, and medicines while addressing some of society’s most significant challenges

Exciting times lie ahead as this field continues to evolve!

Here are some of the companies leading the charge:

$CRSP $DNA $EDIT $TWST $BEAM $RXRX $AGEN $ADPT $RNAZ $ABBV $RHHBY $PRLB

"The rapid and complete resolution of aggressive MSS colorectal cancer tumors observed in this study is unprecedented in the field" says the author Dr. Kasi

Adaptive Biotechnologies (ADPT on Nasdaq) is making significant advancements in biotechnology, focusing on harnessing the adaptive immune system for diagnosing and treating diseases

Recent advancements in Synthetic Biology or SynBio as Ai Tech begins to move the science forward faster!

Stock Markets do not like Tradewars - Is your Retire Fund in Jeopardy?

Is your Retire.Fund in jeopardy of a severe downturn in Stocks

You recently retired, or will retire in the next few years, but you are still heavily invested in the stock markets because that is where the growth has come from for the past 10 or so years.

  Did you take a beating in 2008? Do you even remember what happened that year? Maybe you didn't start saving/investing until late in your career, and you feel you need a bit more!

 Maybe it's time you considered "solidifying" the investments you still have.

Paper profits are great, until they are not! A sudden reversal in stock prices can wipe out 50% of your portfolio.  It can happen really fast these days as the Algos take over the selling, and markets drop like a rock! If that happens this year,(and this writer believes it will), then you may be left trying to decide to "stay in" to try and recoup your losses, or cash out with 20-50% less profit. If such an event occurs, it maybe a decade before you recoup those losses.

To this date the Nasdaq has returned, year to date, over 19%  "THAT" my friends is a great return on investment! The SP500 has returned almost as much YTD!

If your Index Funds are up over 15%, then congratulations, because, I believe, it won't happen again for years to come.  I sincerely do not believe that retirees or those nearing retirement, "will ever see" returns like this again!!!

If you are over 50 or need the money in your portfolio for retirement, if you don't have another 10-15 years to make up losses and cannot afford a downturn in stock prices (or bond prices for that matter see: Bonds) then maybe you should consider the wise advice of the foremost investor in modern history, Mr. Warren Buffett, who famously said:

Remember, "Cash" is also a Position and, at this juncture, it may be the best position!At this writing, we are mostly in cash, with a few exceptions.

Good luck, and be careful!  

Your Retire.Fund depends on it!

Internet domain Names are a vital and valuable part of today's Ecommerce

 In the realm of nanotechnology, several pioneering scientists have made significant contributions that might earn them the moniker "Nanoman." Here are some notable figures:

1. Richard Feynman: Often considered the visionary who inspired the field, Feynman's 1959 lecture "There's Plenty of Room at the Bottom" laid the conceptual foundation for nanotechnology. He discussed the possibility of manipulating individual atoms and molecules, a concept that was revolutionary at the time.

2. K. Eric Drexler: Known as the father of molecular nanotechnology, Drexler popularized the idea of building machines at the molecular scale through his book "Engines of Creation" (1986). He introduced concepts like molecular assemblers and nanorobots, which have influenced research and ethical discussions in the field.

3. Sumio Iijima: A Japanese physicist who discovered carbon nanotubes in 1991. Carbon nanotubes have unique properties that make them essential in various nanotechnology applications, including electronics, materials science, and medicine.

4. Don Eigler: A physicist at IBM, Eigler was the first person to manipulate individual atoms using a scanning tunneling microscope. In 1989, he spelled out "IBM" with 35 xenon atoms, demonstrating precise control at the atomic level.

5. Richard Smalley: Co-discoverer of fullerenes (buckyballs), for which he shared the Nobel Prize in Chemistry in 1996. His work opened new avenues in nanomaterials and helped establish nanotechnology as a significant field of study.

6. James Tour: A chemist renowned for his work in molecular electronics and nanomachines. Tour has developed nanoscale cars and has contributed extensively to graphene research.

Given their groundbreaking work and foundational contributions to nanotechnology, any of these scientists might be deserving of the nickname "Nanoman."

While all the scientists mentioned have made significant contributions to the field of nanotechnology, K. Eric Drexler stands out as particularly deserving of the nickname "Nanoman." Here's why:

Pioneering Molecular Nanotechnology

• Foundational Work: Drexler is often referred to as the father of molecular nanotechnology. His early work laid the groundwork for thinking about building machines at the molecular scale.

• "Engines of Creation": In his seminal 1986 book, "Engines of Creation: The Coming Era of Nanotechnology," Drexler introduced the concept of molecular assemblers and nanorobots. This work not only popularized the term "nanotechnology" but also inspired a generation of scientists and researchers to explore this new frontier.

• Conceptual Innovations: Drexler's ideas extended beyond theoretical musings; he proposed practical mechanisms for molecular manufacturing, including detailed analyses of potential designs and their implications.

Influence on Research and Ethics

• Shaping the Field: His visionary concepts have significantly influenced the direction of nanotechnology research, pushing scientists to consider not just the manipulation of materials at the nanoscale but the construction of complex systems molecule by molecule.

• Ethical Considerations: Drexler also delved into the ethical and societal implications of nanotechnology, raising awareness about potential risks like uncontrolled self-replication (often dramatized as "grey goo") and advocating for responsible development.

Recognition and Leadership

• Academic Contributions: He earned the first doctoral degree in molecular nanotechnology from the Massachusetts Institute of Technology (MIT), solidifying his academic credentials in the field.

• Organizational Roles: Drexler co-founded the Foresight Institute, a think tank focused on promoting the beneficial implementation of nanotechnology and addressing its ethical challenges.

Conclusion

Given his foundational contributions, thought leadership, and lasting impact on both the scientific community and public perception of nanotechnology, K. Eric Drexler embodies the essence of "Nanoman." His work has not only advanced the field technically but also shaped the dialogue around its future possibilities and responsibilities.

Target dated retirement funds are known as Retirefunds and should be part of your financial future.

If you were to ask a qualified investment adviser what is the best time to begin investing for your retirement, S/he would tell you it was 40 years ago. They would also suggest that, the second best time to begin is today!  Everyone who has ever been involved with the subject of saving for retirement knows how true this statement is. The longer your horizon is to the big day, and the earlier you start saving and investing, the more you will have in retirement.

Retirefunds or target dated retirement funds, set up with your retirement date in mind. If that date is 30 years out, then you are ahead of 98% of your peers in planning for the future.  If that date is only 10 years out, then you are in the middle of the pack so to speak, of your peers in planning for the big day. In other words, most people only think about their retirement and it's financial consequences as it gets closer.  Obviously, the sooner you take the plunge and begin your investment plan, the better off you will be in your golden years. If you are one of the Millennial generation (currently between the age of 18 and 34) you should be talking to a qualified investment adviser right now about "your" plan to retire in good financial health.

I have a nephew who just turned 20 and he recently approached me with some questions about how he should start an investment plan.  We talked briefly about registered retirement savings plans and tax free savings accounts but my main advice to him is to seek out a good financial planner and to make a Retirefund or target dated retirement fund, one of his main options. I wish I had been as in tune with finances at his age as he seems to be. While many of his peers are still looking for jobs, going to college or university etc, he already has some significant savings and is looking for solid advice in planning for a rainy day.

 Facts: 25 years of research shows that, "Individuals don't spend time doing any planning or thinking about retirement until it happens," (Salisbury)  In fact, most people spend much more time planning a vacation than planning for retirement.

I happen to be from the generation that was blessed with a pension plan I had paid into for 36 years,  It makes me more free to play with a portion of my portfolio.  If you are not part of a long term pension plan (and even if you are) you should not "play" with your retirement money.

Since this article is a "heads up" so to speak for the 18-34 yr old crowd, I will not get into boring details of individual funds or companies.  I will leave that to your qualified investment adviser.

Here are some resources to help you investigate Retirefunds, as you begin your journey to financial independence in retirement.

Familiarize yourself with the various funds then sit down with a qualified financial planner to discuss your Retirefund options.  Don't play the market. Leave that to the experts.

1. Target - Date Fund Definition | Investopedia

2. SEC.gov | Target Date Retirement Funds - U.S...

3. T. Rowe Price Target Date Funds - T. Rowe Price

4. Target date fund - Wikipedia, the free encyclopedia

5. Pick the Best Target- Date Fund for You- Kiplinger

6. American Funds 2020 Target Date Retirement Fund® (RECTX...

7. Fidelity Freedom Funds - Target Date Mutual Funds

    And if you are Canadian:

   1. Pick the Best Target- Date Fund for You- Kiplinger

   2. Vanguard Target Retirement Funds | Vanguard

   3. The future of target- date funds | Benefits Canada

      www.benefitscanada.com/...future-of-target-date-funds-58814

   4. Retirement- date funds: Smart no-brainer or investor...

      www.theglobeandmail.com  › …  › Adviser’s View

   5. Fidelity Freedom Funds - Target Date Mutual Funds