It is axiomatic that a company’s stock’s price is the present value of all future cash flows it is likely to pay out, and that earnings constitute one gage of a company’s economic value. Unfortunately, there is often a lot of smoke between published profits according to generally accepted accounting principles
and the real output
of a company.
Investors rely on companies’ financial statements
for information on how a company is doing. That’s not
when reported earnings
by unusual, or unusually large, gains or losses, or other so-called nonoperating items
. For banks
, this is especially problematic
Analyst meetings are a good way for securities analysts to get information about the companies they cover, or are interested in. These meetings can benefit individual investors, as well.
can be used to determine the price movement
of a stock
) in relation to a benchmark. By combining low Beta stocks with Value Line’s fundamental analysis, we believe investors can realize superior risk-adjusted returns
over the long-term.
While most investment professionals subscribe to the idea that portfolio diversification is a valuable concept, there are, of course naysayers.
The concept of diversification
has been around for a very long time, however, it wasn’t until the 1950s that it was seriously applied to portfolio theory. The basic concept is that by choosing investments that have minimal or no relationship with each other, an investor can reduce his or her overall risk.
Value Line calculates dividend yields
and the payout ratio
slightly differently than the norm. In this article, we explain the figures on the VLIS page, and how we come up with our dividend estimates
often think that dividends
come out of earnings, but this is not true. This misperception may scare some investors away from great dividend-paying companies.
Ask anyone that owns stocks and they’ll probably tell you that they are an investor.
And, in fact, the entire financial industry and the media that cover it will likely agree, or at least want you to believe it’s so.
Within the retail space
, merchants are classified into two broad categories, each of which is defined by the type of product sold. Although there are differences between the two groups, stocks in both segments are typically influenced by the same set of factors that can affect their performance.