As the markets continue to lack volatility, a number of investors are attempting to find opportunities outside of the traditional growth stocks. This leads many of them to alternatives such as forex, options, etc. However, some investors are still attempting to find gains in the equity markets, and a number of them are doing so through looking for companies with exceptionally high dividend yields.
How high are “high” dividend stocks? As the markets continue to lack volatility, a number of investors are attempting to find opportunities outside of the traditional growth stocks. This leads many of them to alternatives such as forex, options, etc. However, some investors are still attempting to find gains in the equity markets, and a number of them are doing so through looking for companies with exceptionally high dividend yields.…
Investment Red Flags: Close
Sharing a lot of characteristics with the “Ultra Low Market Cap” red flag, looking for companies with a close of less than 2 gives you a number of companies whose market cap ranges from Micro to Small. These companies tend to have extremely poor fundamentals and also have a high probability of causing negative returns in your portfolio.…
Investment Red Flags - Micro-Cap Companies
Every time I get on the internet to try and find something new to learn about the markets I’m inundated with advertisements selling classes. These classes all seem to follow the same theme – they teach you how to become “rich” on penny and microcap stocks. Some people even get lucky and make some money doing it, but the vast majority is simply throwing money into a pit.…
Investment Red Flags – Bad Beneish Score
How negatively does a bad Beneish score affect your portfolio? With all of the recent articles regarding red and green flags, I realized I should begin writing articles on the flags within the score. One such flag, the bad Beneish score, is a key component of the red flags score.…
millennials want to invest in something that they feel is groundbreaking and familiar to them within the culture of their age group. Many times, this results in them asking me for advice on marijuana stocks. So, instead of going into it with every single friend, I've decided to compile my thoughts on the Marijuana industry here.
Being the 20 something year olds that they are (myself included), millennials want to invest in something that they feel is groundbreaking and familiar to them within the culture of their age group. Many times, this results in them asking me for advice on marijuana stocks. So, instead of going into it with every single friend, I’ve decided to compile my thoughts on the Marijuana industry here.…
   August 1, 2017    0
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.…
With the publishing of our Synopsis with red flags article, I thought it was time to discuss what exactly a red flag is and why they should be looked for when identifying and eliminating potential investments
With the publishing of our Synopsis with red flags article, I thought it was time to discuss what exactly a red flag is and why they should be looked for when identifying and eliminating potential investments. At its core, a red flag doesn’t mean that the investment is bad. It just means that you are more likely to lose money on the long position than you are to make a profit.…
I've been seeing a lot of articles recently that are very focused on the idea, that by purchasing the industry or sector that performed best over the past year you are giving you the best chance at making returns. I'm a little skeptical, but just as hopeful to see whether or not this is a potential new avenue to take in my portfolio.
I’ve been seeing a lot of articles recently that are very focused on the idea, that by purchasing the industry or sector that performed best over the past year you are giving you the best chance at making returns. I’m a little skeptical, but just as hopeful to see whether or not this is a potential new avenue to take in my portfolio.…
 When investing, for every fairy tale stock like an Amazon(AMZN) or Nvidia(NVDA), there’s an equally disastrous stock like MoSys(MOSY) or Gevo (GEVO). To avoid getting into stocks like these, it’s important to look at their failures and analyze them to avoid getting into the next potential train wreck of a stock
When investing, for every fairy tale stock like an Amazon(AMZN) or Nvidia(NVDA), there’s an equally disastrous stock like MoSys(MOSY) or Gevo (GEVO). To avoid getting into stocks like these, it’s important to look at their failures and analyze them to avoid getting into the next potential train wreck of a stock. …
The term "red flags" is synonymous with "bad things are going to happen," and, for investors, they are a sign that you should likely stay away from that investment. However, all this talk of red flags being able to predict that a company is going to do poorly makes you wonder, does it work?
Just how telling are red flags? The term “red flags” is synonymous with “bad things are going to happen,” and, for investors, they are a sign that you should likely stay away from that investment. However, all this talk of red flags being able to predict that a company is going to do poorly makes you wonder, does it work?…
Insider Ownership
High insider ownership is something commonly associated with value investors. The idea behind it is rather simple. If the management owns a large portion of the company, then they are incentivized to perform well – benefiting not only themselves but the shareholders as well.  The other side of that coin is that owners may not listen to the advice of people within the company, using their position as majority shareholder to push for things the company wouldn’t do otherwise.…
50% Employee Loss
   Most businesses run on a cyclical manner, meaning that they are subject to a normal business cycle. Using the Equities Lab screening technology, we can take a look at companies that lost 50% of their workforce in the last 252 days of trading. While we look at these companies, it is important that we keep in mind that there is a bigger picture for layoffs and losing employees rather than just “cost cutting”.…
Watch Your Math
When it comes to investing, I love thinking in terms of standard deviation. It’s one of the quickest ways to assess the risk of a potential investment, and there is an established good benchmark standard deviation that I shoot for when picking investment strategies. There is just one small problem – the close.…
A historical look at IPO performance
   In my last article, I wrote about the Snap IPO and how other fairly recent IPOs performed after going public. The results, for the most part, weren’t too impressive. To get a better understanding of how IPOs have done over the last two decades I back tested the IPO screener to go back all the way to 1998.…
What happens when you eliminate the 10%
Getting rid of the top 10% of performers We’ve been making a lot of assumptions recently, so why stop now? I was speaking with someone the other day and they made the statement that since the majority of the market doesn’t really perform that well, and the general market only increases so much as a result of a few superstars.…
   March 23, 2017    0   
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When Strategies go Bust What would you do if I told you that you could have earned an average of about 50% annually over the past twenty years? Would you believe me? Would you go out and invest in the strategy? Above we have a screen that has increased by over 600,000% over the past 20 years.…
   March 1, 2017    0   ,
Chasing the Market Never Works
Chasing Never Works Momentum based investing is everywhere, and there’s nothing we can do about it. From investing in trend lines or price oscillations, it’s an investment philosophy that is here to stay. Though it isn’t my favorite style of investing, it’s at least worth a look. Recently I was approached with the investment idea that, if you invest in the top performing industry, you are likely to make money.…
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We look at companies who have just reached their 52 week high and for companies who have just reached their 52 week low. Which is better: buy high and sell higher, or buy low sell high?
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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. …
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Is Short Interest a Good Indicator? In Equities Lab, if you subscribe to our professional level, you have the ability to access certain fields that aren’t available to our more basic membership levels. One such field is the short interest that is held in companies across the market, and it was this field that got me thinking.…