August 11, 2020

## The Consequences of COVID-19 on Chinese Manufacturing

COVID-19, initially spread throughout China, has now spread throughout the world, closing virtually everything. Some countries have gotten the virus under control, while others struggle to get back to normal. Surprising was the speed with which China was able to get the virus under control. For a country that people in the public health sector believed had not built the infrastructure to handle such an event, life there is getting back to normal slowly, but surely.…

October 23, 2018

## Financial Valuation: Gordon Growth Model

The Gordon Growth model is an offshoot of the standard dividend discount model. This model is used primarily to calculate the intrinsic value of a firm based on the discounted value of future dividends.

# The Equation

At a basic level the Gordon Growth Model is calculated by:

P = D1 / r-g

• P = The intrinsic price you should pay for the firm
• D1 = The dividend for the next period
• R = The current discount rate, for our purposes we will use the CAPM for this
• G = Is the dividend growth rate

# Applying the Gordon Growth Model

So, we know how this is calculated if you are doing this on a sheet of paper, and if you don’t have the data there may be some pieces of information that you need to assume.…
October 16, 2018

## CAPM – Capital Asset Pricing Model

CAPM – Capital Asset Pricing Model

The CAPM is a staple of most every finance course that focuses on the valuation of equity investments. And though it may be a very good way to begin the process of teaching students how to effectively analyze securities there are a lot of assumptions that make it very difficult to use in a real world setting.…

September 19, 2018

## What happens to AAPL when they release a new iPhone?

Whenever I’m speaking to people about AAPL they tend to ask the same question. Apple just released a new phone, should I buy into their stock now since there will be an influx of sales? The gut reaction I, and many other people within the industry have, is that the future sales are already baked into the share price.…

August 15, 2018

## Equities Lab vs. Gurufocus: Which Backtest Software

This article pits Equities Lab and Gurufocus against each other, to determine which one deserves the individual investor’s loyalty. This is simple, once the criteria for a “good” backtesting tool is specified.

Investopedia.com states that backtesting is “the process of testing a trading strategy on relevant historical data to ensure its viability before the trader risk any actual capital.…

June 19, 2018

# How to Use a Watchlist

## Henry Crutcher

A brief intro to get more out of watchlists, which help you manage your holdings.

### Visit a watchlist

How to use a Watchlist

Your Holdings view is a collection of all your watchlists, gathered under title bars for each one. Here we show just one (FCA Dividends).…

June 6, 2018

## Quantpedia Strategies

As I was recently looking around at other quantitative firms, I happened across Quantpedia. In the past we’ve spoken to Quantpedia and are actually featured on their website. However, this time around I was taking a look in their screener section and came across the “F-score and Equity short-term reversals”.…

May 18, 2018

# Portfolio123 has increased their prices, is it time to change?

With the recent price increase in the services provided by Portfolio123, it has come to light that many users of their service may be looking for alternatives. We’ve been getting a number of calls these past couple of days from disgruntled users, and we have decided to write out the comparisons between Portfolio123 and Equities Lab here.…

April 24, 2018

## What is Active and Passive Investing?

To figure out which of these methods fit our investing needs, we first need to understand exactly what they are. Passive investing is assuming that the general market is efficient and that picking your own companies is pointless. Investments typically come in the form of index funds. …

February 13, 2018

## Should you be Scared of the Dow’s 1700 point drop?

On the fifth of February 2018 the Dow Jones Industrial Average saw its largest single day drop in history. This drop coming off a market sell-off at the end of January has caused many investors to call for the start of a bear market.…