January 31, 2019

My time here at Equities Lab

After four years it is now time for me to move onto the next chapter. My time here at Equities Lab has been fantastic, and I’ll still be around posting articles here and there. But before then I’d like to summarize my experiences here in this article.

Since I was first introduced to finance when I was 13, it is something that has always interested me.…

October 23, 2018
The Gordon Growth Model

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 Explained

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
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. That said, this is a very testable idea, so let's actually put it to the test. 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. That said, this is a very testable idea, so let's actually put it to the test.

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
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.

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 20, 2018

Stock Pick Guide

Tyler McCain

Click next to “Research Stock”

Here you will input the ticker symbol for the company you are looking to analyze. This can be anything within our system. For this case we are going to be using AAPL.

Adjust the dates

You can adjust the time frame of the chart going back to 1995.

June 19, 2018

How to Use a Watchlist

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

Your Holdings view is a collection of all your watchlists, gathered under title bars for each one. Here we show just one (FCA Dividends). The score is monthly returns, which is a bit short term for our taste.…

June 6, 2018

F-Score and Equity Short-Term Reversals

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
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.

Portfolio123 Alternative: Equities Lab Backtester

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
To figure out which of these methods fit our investing needs, we first need to understand exactly what they are

Active vs. Passive Investing

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. …