Stocks – Price vs Value
Price vs Value A $2 stock can cost you more than a $20 stock. If you look at earnings relative to share price, a $2 can cost you more in terms of earnings per share than a higher priced stock....
View ArticleWhat’s the Market Cap?
Market Capitalization Market Cap = # of shares outstanding * Share price Represents what the market believes the dollar value of a company is. Companies are grouped into categories based on their...
View ArticleThe PEG Ratio
PEG Ratio PEG = Price/Earnings to Growth (Stock Price / Per Share Earnings)/Earnings Per Share Growth Rate The PEG ratio is superior to the PE ratio because it can provide insight as to whether or not...
View ArticleBasic Bond Pricing
Bond Pricing Par Value – Initial offering price of the bond (typically $1,000 for corporate, $5,000 for municipal and $10,000 for federal) Coupon Rate – This is the interest rate you expect to receive...
View ArticleImplementing A Strategy With The Help Of Stop-Loss Orders
In the past we’ve discussed developing a strategy as an investor and then sticking to those rules and goals you’ve developed. One tool in building a trading and an investment strategy is the stop-loss...
View ArticleMisaligned Stock Valuations & Nature Running Its Course
Many people outside the investing community (and some within) often express their displeasure and confusion of the valuation of certain companies. “How can X company be worth Y dollars?” is the...
View ArticleRegression Toward the Mean & Investing
When one speaks of “regression toward the mean” (average) they are speaking of the the phenomenon where an extreme measurement tends to move closer to the average upon successive measurements. As an...
View ArticleWhen To Look At Operating Cash Flow
Revenues and earnings are nice numbers to quote, but often free cash flow (FCF) is a more valuable number for investors when evaluating a business. FCF can be a very powerful tool when evaluating a...
View Article“If 2000 Was A Bubble Factor Of 10, We Are At A 9 Right Now”
Bellow are some thoughts from Simon Black and the folks at ZeroHedge. I all too well remember the dot-com bubble that burst as we entered a new decade almost a decade and a half ago. No the most...
View Article
