December 1, 2017

An Educational Look at Apple (AAPL)

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.

Beyond those product decisions, how does Apple, the company, perform from a quantitative point of view? What do the financials illustrate, and what should investors’ next course of action be??

To do this effectively the company must be broken up into four individual parts:

  1. Income statement – Earnings, to profit margins, revenue, expenses, etc
  2. Balance sheet – Does it have too many liabilities?
July 25, 2017

Ohlson O-Score

If you’re a short seller, then I’d like to introduce you to the Ohlson O-Score. This is a score created by Dr. James Ohlson of New York University, aimed at predicting the financial distress of a company. The Ohlson O-Score is the result of a nine-factor linear combination of coefficient-weighted accounting ratios that are found from financial disclosure statements that are provided by publicly traded companies. Below is the actual formula for the Ohlson O- Score.

Ohlson O-score formula

Ohlson O-score formula

So, from a first glance it looks very complex, well that’s because it is. For the purpose of understanding what exactly this equation is composed of, let’s break it down piece by piece.…

June 1, 2017

Low debt vs. High debt

  Debt, a word that consumers and college students know all too well. How do companies view debt and how does it affect their stock price? Let’s find out by taking a look at both high debt companies and low debt companies.We’ll start off with high debt. This Equities Lab stock screener finds companies with a debt to equity ratio ranking them in the top 25% of the market, and total liabilities to assets ranking in the top 25% of the market while outperforming by 2%.

  High debt companies have more pressure under them to perform well in order to please their shareholders, while also avoiding drowning in their own debt.…

April 30, 2017

Beneish M-Score

The Beneish M-score was designed as a way to detect possible manipulation of a company’s financial statements. The score itself can be anything between –infinity and +infinity, though most scores fall between -10 to 10. Anything below -2.22 is considered a good score and suggests that the company is likely not manipulating their balance sheet. On the flip side, if a company has a score of greater than -2.22 the probability of manipulation increases. That being said, this score doesn’t necessarily prove that a company is manipulating their books. Rather it indicates how probable it is that a company is behaving in a fraudulent manner.…

April 1, 2017

Trump the Market

   Over the past few weeks’ major indices have continued to hit new all-time highs, it seems like almost every industry is performing well. However, it’s important not to get lost in all the commotion and news surrounding the markets and continue to look for safe investments with “yuge” returns. Under the current administration, investors are anticipating a more pro-business environment complimented by tax cuts and deregulation for certain industries. Since there is a lot of anticipation relying on fiscal policy, it is important not to get ahead of yourself. While the Trump administration is promising a lot of economic growth, many economists beg to differ and argue that we are already close to full natural employment and that there isn’t much room for 3-4% GDP growth.

March 22, 2017

What is the Piotroski F-Score?

Piotroski F-Score

We mention the Piotroski F-Score in a lot of our articles, videos, and even within a lot of our prebuilt screens. So, it poses the question, what exactly is the Piotroski F-Score?

Created by a professor of Accounting at the University of Chicago named Joseph Piotroski, the score is used to identify possible investments.



Here is the score built within the Equities Lab system using the Equihack language. For each line item that is deemed true a point is added to the score. For every line item that is not true, nothing is added to the score. The score itself is broken up into three different parts –

· Profitability – though not outlined in the editor, this contains the first four items of the score.…

February 27, 2017

Private to Public: The IPO

 The IPO Wall Street has been salivating over for months is finally becoming a reality. Snap Incorporated, the parent company of Snapchat, officially announced it will be going public. The company will have its first day of trading at the New York Stock Exchange sometime in March (No specific date as of yet) with Goldman Sachs and Morgan Stanley as the underwriters. Snapchat is a unique company with the majority of its user base coming from a very young demographic. The company’s SEC filings revealed steady revenue growth over the past couple of years, but will this growth continue as the company competes in a sink or swim business environment?…

January 20, 2017

Montier C Score

Montier C Score – Who is Cooking the Books?

At its base, the Montier C Score is simply a way to give you, the investor, an idea of the probability that a company is cooking their books. This score is from 0-6, and basically, the higher the C-score the higher the probability that something fishy is going on with their books.

How do you build the Montier C Score?

The C Score is built of six different true/false variables. With every variable that is “true”, the score increases by one.

  • A growing difference in net income and cash flow from operations.
June 28, 2016

Explanation of our new Value Across Time Score

Value Investing By Time

In this short article we are going to go over what exactly is calculated in the new Value Across Time Score. The first thing that you need to know is that each part of the score is based on the rank of a variable within the last year.

This strategy, at its core, takes a look at each company within the universe and ranks it based on these factors basing it off of the performance of that company over the past year in each of these categories. This results in companies that, when compared with themselves and then again to the broader market, have a history of outperforming the rest of the market.…