Research Articles
Is The Increase In Volatility Signaling A Dangerous Market Environment?
2016-11-12
Introduction Over the last several weeks stock price volatility has increased significantly above norms. All of a sudden it is not uncommon to see stock prices moving 5%, 10% or more in a single trading day. Interestingly, this volatility is occurring both to the upside and the downside. Common sense would suggest that the intrinsic […]
When is the PEG Ratio Superior to the P/E Ratio? Part 2
2016-11-03
Introduction Financial metrics such as P/E ratios, price to cash flow ratios, PEG ratios, price to sales ratios, price to book value, and many others, should be thought of as tools in the investor’s toolbox. They can all be useful when appropriately utilized towards putting together a successful stock portfolio. However, just as you wouldn’t […]
Which Is the Better Valuation Metric? The P/E Ratio or the PEG Ratio: Part 1
2016-10-28
Introduction Recently, I have been engaged in rather intense discussions regarding the validity of P/E ratios versus PEG ratios as proper or appropriate valuation metrics. I generally find these types of debates befuddling for a couple of reasons. One, they are often a result of a failure to communicate. Either party or sometimes both parties […]
Why I Am Now Interested In CVS Health Corporation
2016-10-13
Introduction Investing in great companies sits at the core of my investment philosophy. In this regard, I reject the idea that I invest in the stock market. To me, the stock market is simply the store I shop in to purchase interests in fine businesses. In the final analysis, my investment objective is to become […]
What Rate of Return Will an Investment in Johnson & Johnson Deliver? Part 2
2016-10-05
Introduction I never invest in a common stock without a clear expectation of the future returns that it can generate for me. Consequently, I consider this one of the most important steps in my research and due diligence process. Unfortunately, my experience in dealing with investors has led me to conclude that this important step […]
Valuation is a Measurement of Soundness and Not the Primary Total Return Producer: Part 1
2016-09-28
Introduction Much of what I write about is related to the importance of valuation in one way or another. I do this, because I am a fervent believer that one of the most important metrics that investors should be considering before investing in a stock is the relative valuation of the shares they are purchasing. […]