-1
votes
1answer
1k views

Calculating a stock's price target

In the book 'Insider Buy Superstocks', he seems to be calculating price targets like this: [last quarter EPS] x 4 x PE = price target Does that look correct? Is he basing PE off the current stock ...
4
votes
3answers
372 views

Why would analysts recommend buying companies with negative net income?

Can anyone explain why some analysts recommend companies in the biopharmacy sector as a "buy" even though they have high R&D costs and no real profit? I followed three companies and I see the ...
4
votes
3answers
159 views

Benjamin Graham: Minimum Size of the company

In the book "Intelligent Investor", Graham recommends a minimum annual sales figure of 100 Million $ as one of the criteria. How do we adjust this figure for Inflation and a country other than the ...
2
votes
3answers
137 views

Are there common stock price trends related to employee option plans?

Facebook IPO was May 18th, 2012. I understand that employees are not able to sell their shares until 6 months after the date of IPO (is this correct?). Can we expect the price of Facebook to decrease ...
5
votes
2answers
721 views

Valuation, pricing, and analysis of securities

I was wondering what differences are between valuation and pricing of securities? To me, they seem identical and for identical purposes. If not, what is each of them trying to get from what is ...
1
vote
1answer
68 views

Accounting for splits in a stock price graph

Many companies will have splits of their stock (either forward or reverse). However, when looking at the before and after prices, a raw analysis of the graph would look like the stock lost half its ...
3
votes
3answers
259 views

What does “profits to the shareholders jumped to 15 cents a share” mean?

I'm reading the news about a company and they state that: "net profits attributable to the shareholders jumped to US $25.6 million, or 15 cents a share". What does it mean in terms of share price? ...
2
votes
4answers
194 views

How can I find out what factors are making a stock's price rise?

For example: Fannie Mae went up ~20% today, February 3, 2011. How come? What websites have you found to be useful in returning relevant information? It seems to me Yahoo Finance is not very good at ...
5
votes
1answer
124 views

Where can I obtain historic ratios for a sector?

I am trying to compare an individual company's historic annual ratios (leverage, liquidity, profitability, shareholder return, etc.) to its sector average. However, I can't find these numbers for a ...