Which of the Following Would Most Likely Represent a Buying

question 91

Multiple Choice

Which of the following would most likely represent a buying opportunity for a value stock investor?

• A) LULU has a P/E of 35 and the company announces continued earnings growth of 20%.
• B) ABX with a P/E of 12 announces an increase of 2% in its quarterly EPS.
• C) RIMM pays no dividend, has recorded a loss of $0.20 a share and a positive cash flow of $0.28 a share.
• D) ED's P/E is 9 compared to the industry average of 15 and its EPS growth is the same as the rest of the industry.
• E) None of these represent a buying opportunity for a value stock investor.

---

Definitions:

Backup

The process of making a copy of data stored on a computer or server to protect against data loss.

Storage Medium

Any material or device that can be used to store data, such as a hard drive, solid-state drive, or optical disc.

Head Crash

A hardware malfunction in a hard disk drive when the read-write head comes into contact with the spinning disk surface, often resulting in data loss.

Software

Programs and operating information used by a computer to perform specific tasks.