Stock Analysis of Diana Corp.
Thank you for requesting an analysis of Diana Corp. from VectorVest
ProGraphics. The ticker symbol for Diana Corp. is DNAK. DNAK is traded
on the NASDAQ.
PRICE: DNAK closed on 09-Oct-1997 at $8.50 per share.
VALUE: DNAK has a Value of $4.90 per share. Value is the foundation of
the VectorVest system. It is a measure of what a stock is currently
worth. Value is based upon earnings, earnings growth rate, dividend
payments, dividend growth rate, and financial performance. Current
interest and inflation rates also play an important role in the
computation of Value. When interest and/or inflation rates decrease,
Value goes up. When interest rates and inflation increase, Value goes
down. Sooner or later a stock's Price and Value always converge.
RV (Relative Value): DNAK has an RV of 0.58. On a scale of 0.00 to 2.00,
an RV of 0.58 is poor. RV reflects the long-term price appreciation
potential of the stock compared to an alternative investment in AAA
Corporate Bonds. Stocks with RV ratings above 1.00 have attractive
upside potential. A stock will have an RV greater than 1.00 when its
Value is greater than Price, and its Relative Safety (see below) and
forecasted earnings growth rate are above average. In some cases,
however, a stock's RV will be above 1.00 even though its Value is well
below Price. This happens when a stock has an exemplary record of
financial performance and an above average earnings growth rate. In this
case, the stock is currently selling at a premium, and the investor is
banking on future earnings growth to drive the stock's price higher.
This information is very useful not only in knowing whether or not a
stock has favorable price appreciation potential, but it also solves the
riddle of whether to buy high growth, high P/E, or low growth, low P/E
stocks.
We believe that RV ratings above 1.00 are required to consistently
achieve above average capital gains in the stock market.
RS (Relative Safety): DNAK has an RS rating of 0.79. On a scale of 0.00
to 2.00, an RS of 0.79 is poor. VectorVest looks at safety from the
viewpoint of an equity investor (one who is buying stock of a company)
rather than that of a purchaser of debt (one who is lending money to the
company). From this perspective, consistency of financial and operating
performance, stock price appreciation history, and price volatility are
the key factors used in the evaluation of Relative Safety (RS). Debt to
equity ratio, capitalization, sales volume, business longevity and other
factors are also considered, but to a lesser degree.
VectorVest favors steady, predictable performers. All stocks are rated
on a scale of 0.00 to 2.00. A stock with an RS greater than 1.00 is
safer and more predictable than the average of all stocks. A stock with
an RS less than 1.00 is less predictable and riskier than the average
stock.
RT (Relative Timing): DNAK has an RT rating of 0.25. On a scale of 0.00
to 2.00, an RT of 0.25 is very poor. RT is a fast, responsive,
short-term price trend indicator. It analyzes the direction, magnitude,
and dynamics of a stock's price behavior over the last 13 weeks; then
reflects and projects the short-term price performance of the stock.
Once a stock's Price has established a strong trend, it is expected to
continue that trend for the short-term. If the trend dissipates, RT will
gravitate towards 1.00. Should the price change dramatically, RT will
notice the crucial turning point. When warranted, it will explode from a
Price low and dive from a Price high.
All stocks are rated on a scale of 0.00 to 2.00. If RT is above 1.00,
the stock's Price is in an uptrend. Below 1.00, the stock's Price is in
a downtrend.
VST-Vector (VST): DNAK has a VST-Vector rating of 0.58. On a scale of
0.00 to 2.00, an VST of 0.58 is poor. VST-Vector solves the dilemma of
balancing Value, Safety and Timing. Stocks with high RV values often
have low RS values, or stocks with low RV and RS values have high RT's.
How can we find the stocks with the best combinations of Value, Safety,
and Timing?
The classic vector formula (square root of the sum of the squares)
handles this problem. It combines a set of forces into a single
indicator for ranking every stock in the VectorVest database. Stocks
with the highest VST-Vector have the best combinations of Value, Safety
and Timing. These are the ones to own for above average capital
application.
GRT (Growth Rate): DNAK has a GRT of -9 % per year. This is very poor.
GRT stands for forecasted Earnings Growth Rate in percent per year. GRT
is updated each week for every stock. Watch GRT trends very carefully.
If the GRT trend is up, the stock's Price will likely rise. If the GRT
trend is down, the stock's Price will increase more slowly, cease to
increase, or subsequently fall.
Recommendation (REC): DNAK has a Sell recommendation. REC reflects the
cumulative effect of all the VectorVest parameters working together.
These parameters are designed to help investors buy safe, undervalued
stocks which are rising in price, and to avoid or sell risky, overvalued
stocks which are falling in price.
VectorVest is tuned to give an "H" or "B" signal when a stock's price is
approximately 10% above a recent low, and an "S" signal when the stock's
price is approximately 10% below a recent high. High RV, RS stocks are
favored toward receiving "B" REC's, and sheltered from receiving "S"
RECs.
STOP-PRICE: DNAK has a Stop-Price of $11.10 per share. This is $2.60 or
30.6% above its current closing Price. VectorVest analyzes over 6,000
stocks each day for Value, Safety and Timing, and calculates a
Stop-Price for each stock. These Stop-Prices are based upon 13 week
moving averages of closing prices, and are fine-tuned according to each
stock's fundamentals.
In the VectorVest system, a stock gets a "B" or an "H" recommendation if
its price is above its Stop-Price, and an "S" recommendation if its
price is below its Stop-Price.
DIV (Dividend): DNAK does not pay a dividend. VectorVest focuses on
annual,regular, cash dividends indicated by the most recent
disbursement. Special distributions, one-time payments, stock dividends,
etc., generally are not included in Dividend (DIV).
DY (Dividend Yield): DNAK has a DY of 0.0 percent. This is below the
current market average of 1.3 percent. DY equals 100 x (DIV/PRICE), and
is expressed as a percentage.
EY (Earnings Yield): DNAK has an EY of -7.25%. This is below the current
market average of 4.65%. EY equals 100 x (EARNINGS PER SHARE/PRICE), and
is expressed as a percentage.
EPS (Earnings Per Share): DNAK has an EPS of $-0.62 per share. EPS
stands for leading 12 months Earnings Per Share. VectorVest determines
this forecast from a combination of recent earnings performance and
traditional fiscal and/or calendar year earnings forecasts.
P/E (Price to Earnings Ratio): DNAK has a P/E ratio of -13.80. This
ratio is computed daily based upon Price and EPS. P/E = Price/EPS.
GPE (Growth to P/E Ratio): DNAK has a GPE of 0.00. This ratio suggests
that This ratio suggests that DNAK is overvalued. Growth to P/E ratio is
a popular measure of stock valuation which compares Earnings Growth Rate
(GRT) to Price Earnings ratio (P/E). A stock is considered to be
undervalued when GPE is greater than 1.00, and vice-versa. VectorVest
believes that RV is a much better indicator of long-term value. The RV
of 0.58 for DNAK is poor.
DS (Dividend Safety): DNAK has a DS of 0. On a scale of 0 to 99, a DS of
0 is poor. DS is defined as the assurance that regular cash dividends
will be declared and paid at current or at higher rates for the
foreseeable future. Stocks with DS values above 50 on a scale of 0 to 99
are above average in safety.
RISK (Dividend Risk): DNAK does not pay a dividend. All stocks in the
VectorVest system that pay dividends are classified as having Low,
Medium or High Dividend Risk (RISK). Stocks with DS values above 50 are
above average in safety. These stocks are classified as having LOW or
MEDIUM RISK. Stocks with DS values below 50 are below average in safety
and are classified as having HIGH Risk.
DG (Dividend Growth): DNAK has a DG of 0 percent per year. Dividend
Growth is a subtle yet important indicator of a company's historical
financial performance and the board's current outlook on the future use
of funds.
YSG-VECTOR (Yield-Safety-Growth Vector): DNAK has a YSG-Vector of 0.00.
On a scale of 0.00 to 2.00, an YSG-Vector rating of 0.00 is very poor.
VectorVest combines Dividend YIELD, SAFETY and GROWTH into a single
parameter. YSG-Vector allows direct comparison of all dividend paying
stocks. Stocks with the highest YSG-Vector values have the best
combinations of Dividend Yield, Safety and Growth. These are the stocks
to buy for above average current income and long-term growth.
VOL(100)s: DNAK traded 146400 shares on 09-Oct-1997.
AVG VOL(100)s: DNAK has an Average Volume of 94356. Average Volume is 50
day moving average of daily volume as computed by VectorVest.
% VOL: DNAK had a Volume change of 55.2% from its 50 day moving average
volume.
OPEN: DNAK opened trading at $8.50 per share on 09-Oct-1997.
HIGH: DNAK traded at a high of $8.60 per share on 09-Oct-1997.
LOW: DNAK traded at a low of $8.00 per share on 09-Oct-1997.
CLOSE: DNAK Closed trading at $8.50 per share on 09-Oct-1997.
% PRC: DNAK showed a Price change of 1.2% from the prior day's closing
price.
INDUSTRY: DNAK has been assigned to the Telecomm (Equipment) Group.
VectorVest classifies stocks into over 190 Industry Groups and 50
Business Sectors.
DNAK has well below average safety with well below average upside
potential. It reflects a stock which is likely to give well below
average, inconsistent returns over the long term.
The basic strategy of VectorVest is to buy low risk, high reward stocks.
We suggest that Prudent investors buy enough high Relative Value, high
Relative Safety stocks to keep the overall RV and RS ratings of their
portfolios above 1.00. As you do this, you'll find that your risk will
go down and your investment performance will improve. Not a bad
combination. |
