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Strategies & Market Trends : Value Investing

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To: jeffbas who wrote (8621)10/12/1999 11:37:00 PM
From: Paul Senior  Read Replies (2) of 78702
 
Inventory Yield. Thanks Jeffrey. Helps clarify a little. I just can't seem to get a grip on this metric. But if increased inventory yield is a leading indicator of poor stock performance and it also means at the same time reduced ROA and ROE figures, those metrics I do understand (somewhat) and are easily found, calculated, and compared. Inventory turns are fairly easy to understand and calculate too.

Of course, given my way of investing-- lots of companies over diverse industries, it's very much expedient for me to have and to see ROA and ROE figures through internet financial data providers. Perhaps, for stocks like WFMI, which really are not value stocks (more like GARP imo), I'll have to consider keeping these additional metrics (inventory turns and inventory yield if I could understand it). For value stocks, I'll stick with Graham and my past experience. Doesn't seem necessary to go beyond ROE and ROA. What do you think?
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