Questions tagged [stock-analysis]

For questions related to the analysis of stock prices, stock markets, etc.

Filter by
Sorted by
Tagged with
2
votes
1answer
483 views

Periodicity in stock charts

Not sure if this is the right forum for this kind of question, but here goes: I have been looking at a 3.5 year time series of several hundred DJIA stocks and notice that for many (but not all) ...
5
votes
1answer
364 views

Bids and asks in case of market order

Suppose that person A places buy market order with quantity 1000 of firm XYZ. Now in the market there only are various asks of quantity: quantity 100, quantity 2000, quantity 1000. Each ask has ...
3
votes
3answers
1k views

Rate of change of beta

While viewing data for an individual stock, I always want to see how much the beta has changed. I see this useful for three reasons: Trends (up, down, or stable) in the beta The 60-month beta hides ...
5
votes
1answer
18k views

Is there a difference between a company's profit vs earnings?

I am reading through a company's annual report trying to do research on whether I should invest in them. I'm new at all this and it's got a lot of complicated terms which I'm unsure about. One thing ...
4
votes
1answer
2k views

Calculating historic S&P 500 returns

I'm using the S&P 500 data provided by Robert Shiller which goes back to 1871. I've then calculated the percent return for each month, the simple arithmetic average is 0.43%. Calculating the ...
1
vote
1answer
262 views

Why does heavy volume indicate the strength of a trend?

When a reversal occurs on a chart on a heavy volume, it is supposed to signal the beginning of a strong reverse trend. For example, if a security was trending upwards and then it moves down on heavy ...
2
votes
1answer
1k views

Gauge the strength of the resistance level of a stock just using EMA

Say I calculate the 200-day EMA of a stock to be $25. The stock currently trades at $22. I see from the historical price action that it has touched $25 and failed to break it two times in the past 4 ...
4
votes
3answers
1k 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 ...
5
votes
3answers
550 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 ...
3
votes
2answers
331 views

Where does the stock go in a collapse?

During the crash at the end of 2008, pretty much everyone was selling their stock and the market tumbled approximately 50%. Who purchased the stock? Was it market makers or other people? I understand ...
1
vote
2answers
178 views

Why don't institutions share stock recommendations like Wall Street analysts?

The article Track Institutional Buying, Not Analysts states that: Mutual funds, insurance companies, pension funds and other institutional investors rely on their own research. Contrary to ...
20
votes
4answers
2k views

Does doing your “research”/“homework” on stocks make any sense?

One thing about investing has always bothered me. You constantly hear people saying you need to "do your research" or "do your homework" on a company before buying their stock. I rarely watch Mad ...
-1
votes
2answers
3k views

In a quote-driven market, how do market makers figure out bid/ask prices and bid/ask sizes?

I understand that bid/ask prices and bid/ask sizes are ultimately determined by the market maker. I am curious about some general principles that the market maker follows when determining the above ...
2
votes
1answer
3k views

Why bid and ask do not match the price at which the stock is being traded [duplicate]

For a particular stock, the stats look something like this: Price: 54.55 $ Bid: 54.54 $ Ask: 54.55 $ Now if I place a market order, will it get executed at the Price (54.55 $)? My guess is yes. Now ...
2
votes
3answers
2k views

Why liquidity implies tight spread and low slippage

At this link: http://www.investopedia.com/articles/trading/06/daytradingretail.asp they mention: Liquidity allows you to enter and exit a stock at a good price (i.e. tight spreads and low ...
2
votes
1answer
16k views

What time period is used by yahoo finance to calculate beta

On the stock page in yahoo finance, there is specified a beta value for the stock. Now is there a way to know what time period was used to calculate the beta? Is it the trailing 12 months? Does yahoo ...
2
votes
3answers
2k views

Why do moving average acts as support and resistance?

What is the reason that a particular moving average can act as a good indicator of support and resistance for a particular stock? Moving average is just an avg of closing prices over 30 days or 50 ...
3
votes
2answers
4k views

Calculating Profit Ratio (Gross Margin)

When looking at a company's income statement to calculate the Profit Ratio (Gross Margin) PM = Net Profit / Sales Do you include "other" revenue in the equation? Example: XYZ Ltd Income Statement ...
2
votes
1answer
448 views

Is there a step-by-step procedure to find a security's intrinsic value?

Recently I was reading about different fundamental analysis approaches, and specifically about Value Investing, as proposed by Ben Graham and David Dodd. This approach describes a strategy which based ...
4
votes
1answer
2k views

How to calculate average drawdown of a trading system?

Let's say that I'm trying to evaluate a FX trading system. I know how to calculate the largest drawdown during a period of time, but how can I calculate the average drawdown or the average largest ...
17
votes
3answers
19k views

Should I use regular or adjusted close for backtesting?

In an attempt run few backtesting tasks, I have obtained some historical data. I noticed that there are two closing prices available, regular close and adjusted close. After doing some reading, I ...
5
votes
2answers
2k views

Does money made by a company on selling its shares show up in Balance sheet

When we purchase shares of a company for a certain sum of money (e.g: 1000 dollars), is this money immediately available to the company as a cash flow? In the balance sheet, will this money show up ...
19
votes
6answers
37k views

Which Benjamin Graham book should I read first: Security Analysis or Intelligent Investor?

I recently graduated from engineering and I want to know more about investing. I'm particularly interested in Benjamin Graham's ideas. I want to read all of his books, but I couldn't decide which one ...
0
votes
1answer
43 views

Analyst estimates for an insurance company

At this link: http://ca.finance.yahoo.com/q/ae?s=MFC.TO under Analyst Estimates, under Growth Est,they have these numbers: Current Qtr: MFC:18.50% Industry: 146.70% Sector: 36.90% Also how come ...
18
votes
3answers
1k views

If low-cost index funds are considered the best investment, why are there so many high-cost, managed funds?

The general consensus is that the single best indicator of a fund's future performance is the its expense ratio (source). If you look for more than 5 minutes online you discover the Bogleheads ...
3
votes
1answer
196 views

What securities is Return of Capital applicable to?

I am trying to understand to which securities Return of Capital is applicable; I'm especially interested in stocks. From Wikipedia: Return of capital (ROC) refers to payments back to "capital ...
-1
votes
2answers
217 views

How to reconcile these contradictory statements about the effect of volume on stock price?

This link states: Sharp increases in price and sharp increases in volume can mean bulls have been exhausted, all buyers have bought and there is no one else but sellers; the result is bearish On ...
5
votes
4answers
13k views

Why does the biotechnology industry have such a high PE ratio?

I'm looking at this link, which lists P/E ratios by industry. I see that biotechnology has a P/E ratio of 145, which is very high compared to other industries. What is so special about this industry ...
-1
votes
3answers
155 views

Why sales of a company can be more than its earnings

At this link: http://www.thestreet.com/quote/ABX/details/company-profile.html Under per share data: Earnings: 3.36 Sales:14.14 Now Earnings are made up of sales and other stuff. So how comes sales ...
2
votes
1answer
142 views

Get financial reports on Canadian companies

I resonantly started investing money in the stock market. I am wondering what is the equivalent to 10k financial reports in Canada. Also where can one download them. For example, in the US you can ...
5
votes
1answer
568 views

How is it possible that a stock has a P/E of 0.01?

I was looking at this stock: Berkshire Hathaway Inc. (BRK-B) (The Class B shares). How come it has such a low P/E ratio?
9
votes
5answers
6k views

What are the implications of a corporate stock repurchase or share buyback program?

Zynga's board recently announced their authorization of repurchasing up to $200M shares of Class A stock. What are the implications when a company repurchases their own stock? Some specific questions:...
1
vote
1answer
835 views

Rate of return of stock index

One can always see on the news for example, the movement of stock indexes. Say for example: S&P +5.15 (0.05%) or S&P -0.57 (0.001%) But how would I calculate the 2 numbers above? (+5.15 and ...
3
votes
1answer
182 views

Comparing an Income vs Growth fund

Looking at FRIFX vs FRESX - the former is an income REIT, the latter a capital growth fund. Does the view at Google Finance compare the performance of both funds assuming all dividends from the ...
37
votes
8answers
18k views

Why do people buy stocks that pay no dividend?

Before recently, Apple Inc. did not give dividend to shareholders. This makes me curious why people buy Apple Inc. stocks; while it might be due to the expectation of selling stocks at a higher price,...
4
votes
1answer
252 views

meaning of “differing bought and sold value of shares traded;” “money flows into vs out of” a stock

at: http://www.avafin.com/articles/1018128.html I see: "Today, a total of 141 block trades were recorded, typically at least 10,000 shares of stock or more represent a single block unit. Further ...
11
votes
3answers
41k views

What does “more buyers than sellers” in technical analysis of stocks actually mean?

I often hear/read technical analysts looking at volume and price action on a chart and claiming that there are "more buyers than sellers" or vice versa. Since every trade requires a buyer and a ...
3
votes
3answers
1k views

How does stock dilution work in relation to share volume?

I'm aware of stock splits/reverse splits used for modifying volume of a stock, but how often are they actually used? Isn't it less common that a company simply decides to sell more stock at the ...
3
votes
2answers
442 views

What rules govern when a new option series is issued?

As I'm typing this, the CBOE quotes and data page lists GOOG and FB options with expirations of September, October, November and December of 2012. But AMZN and GS only get September and October of ...
2
votes
2answers
2k views

Understanding a Trailing Limit if Touched Order

I"m trying to wrap my head around a Trailing Limit if Touched Order that is offered by Interactive Brokers. The order explanation is at Trailing Limit if Touched. What I'm trying to figure out is ...
2
votes
4answers
192 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 ...
3
votes
3answers
203 views

Which set of earnings is used to work out the P/E of a stock

So company earnings can fluctuate quite a bit, based on the market conditions, seasonal conditions, whether there was a big spend in the last year etc. Therefore, even the last years earnings could ...
23
votes
1answer
2k views

Will the popularity of index funds cause a pricing bubble in the stocks that make up an index?

I can't help but notice the popularity of index mutual funds over actively managed funds. I think all the arguments are sound, but I have one worry: Index funds are run by buying the stocks listed ...
1
vote
3answers
268 views

Question about protecting yourself from company not beating earning estimate

I'm new to this site and thought I'd start off with a quick question. Let's use Advance Auto Parts (AAP) in my example. Let's assume you are looking into buying AAP and you do all the research you ...
5
votes
2answers
6k 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 ...
4
votes
1answer
282 views

S&P reports: number of shareholders?

Just curious -- I've used S&P stock reports for the past 15 years, and I've always wondered about the "number of shareholders" listed in the report. It seems really low (e.g. the S&P report ...
2
votes
3answers
1k views

Which kind of investment seems feasible to have more cashflow every week or month?

My plan is to make close to $2000 a month/$500 a week through investments. For that, I can risk up to $2000 to start with. The following come in to my mind, even if nothing is for sure. 1) If I ...
3
votes
7answers
12k views

Is there a free, online stock screener for UK stocks? [closed]

Does anyone know if there is a free online Stock Screener for UK stocks, especially for the companies in the FTSE100? I'm looking for something similar to the Stock Screener created by Google Finance,...
3
votes
1answer
403 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 ...
2
votes
2answers
431 views

How to graph the market year over year? for example Dow Jones Index

I understand the notion of the market being memory-less and we should not use the history to make future decision. Also, I see in this site there are mentions of specific times in a year where the ...