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A lesson on absolute prices versus relative ones
You’ve been referred to this page by something saying “You can’t (or shouldn’t) use Close > 5.00” in a stock screener.
Imagine you are looking at a share of GoodStock (yeah, I know that’s a lame name for a fake stock!). It goes up and up, and up! …
Analyzing Apple
An Apple by itself
Is Apple a stock worth buying? Other people have discussed (at length) its “questionable” product decisions, such as:
- The touch bar
- getting rid of Touch Id in favor of using facial recognition
- Scrapping a whole ecosystem of connectors to push the “Lightning cable”
- Eliminating the headphone jack from the newest generation of phones.
We’ve all heard the old trope that “Cash is King.” Well, in terms of a company it just might be. As part of our Green Flag score we have created a line that requires that a company have a positive operating cash flow over the past four quarters.
If you are unfamiliar with what operating cash flow is, it is exactly what the name suggests – cash flow from operations.…
How are investments like apple pie?
Think back to the last slice of apple pie you have had. My last slice, eaten with my wife and two daughters, was delicious. It was out of this world. For me, it was the best apple pie. What makes it special? The recipe (passed down from my mother in law to my wife, Emily) is simple:
Ingredients:
6 Granny Smith Apples
1/2 cup of sugar
cinnamon
nutmeg
Four Pillsbury frozen pie crusts
First question: why are we using four pie crusts for one pie?!?…
Looking at XOM
Companies’ stock prices generally go up when earnings do. So, when faced with a stalwart household name whose earnings have been steadily going down for two years, what should we do? Consider Exxon Mobil. Since it has some history (Rockerfeller founded Standard Oil in 1870), we can take the long view. …
About the book
I’m about 1/3 of the way through “The Complete Turtle Trader” by Michael W Covel, and I’m enjoying myself. His narratives about the people are entertaining, though that’s not why I bought the book. It does give me color into how technical traders think, though. …
Quality Minus Junk In Equities Lab
You reach for this pile of small companies, as the academic research says you should, and you come up with a handful of cra — junk. You wonder how to avoid this cra – junk. After all how, as an investor, are you supposed to make any money with this steaming, stinking pile of … junk.…
What is Fama French, and does it have anything to do with fried potatoes? Eugene Fama and Kenneth French are Nobel prize winning economists who advanced, then disproved the Efficient Market Hypothesis (EMH). We’re more interested in their disproof here, as obviously if the stock market were perfectly efficient, there would be no reason for a stock screener. …