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Strategies & Market Trends : Metastock 6.0 for Window

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To: Paul Beattie who wrote (3895)4/7/2002 7:30:47 PM
From: Lee Lichterman III  Read Replies (1) of 4056
 
Thanks, That looks pretty close though it is tracking the moves of the stock "too well" so I will have to assign a cut off point to stop tracking daily moves somewhere. I want it to be able to just pick an appreciation angle then apply an inflation adjustment to that % of earnings growth or else just assign a closing price and inflate from that single point.

I am not sure exactly how to state what I am trying to do I guess. Say if a stock is "assumed" to have 10% earnings grwoth per year and I can find a time period where the stock appreciated to a favorable rate that matched that expectation, say a annual equity appreciation of 10, then apply this indicator to that slope to show the inflation adjusted dollar amount that would compound over the rest of the life of that stock assuming a steady earnings and inflation rate.

The end result would be more of a sloped line than a curve matching equity price movement tit for tat.

Your formula is definitely in the right area, I just have to get it to maybe pick a single or two points now and then continue that line at "X" rate compounding.

Thanks, you definitely helped a lot!

FWIW, I applied the compounding daily in my Excel sheet to CSCO as of 31 December 1995 price and it came out to about 10.23 bucks today. CMCSK was around 19.6 bucks.

Good Luck,

Lee
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