Stock Analysis of Seeq Tech
Found a reference to VectorVest on the WDC strand, and thought I'd
give Seeq the once-over. The following is included for your amusement
& edification (!).
Mark
Stock Analysis of Seeq Tech
Thank you for requesting an analysis of Seeq Tech from VectorVest ProGraphics. The
ticker symbol for Seeq Tech is SEEQ. SEEQ is traded on the NASDAQ.
PRICE: SEEQ closed on 09/19/97 at $3.30 per share.
VALUE: SEEQ has a Value of $3.60 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): SEEQ has an RV of 1.11. On a scale of 0.00 to 2.00, an RV of
1.11 is good. 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): SEEQ has an RS rating of 0.76. On a scale of 0.00 to 2.00, an
RS of 0.76 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): SEEQ has an RT rating of 1.46. On a scale of 0.00 to 2.00,
an RT of 1.46 is excellent. 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): SEEQ has a VST-Vector rating of 1.16. On a scale of 0.00 to
2.00, an VST of 1.16 is good. 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): SEEQ has a GRT of 22 % per year. This is excellent. 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): SEEQ has a Hold 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: SEEQ has a Stop-Price of $3.10 per share. This is $0.20 or 6.1%
below 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): SEEQ 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): SEEQ has a DY of 0.0 percent. This is below the current
market average of 1.2 percent. DY equals 100 x (DIV/PRICE), and is expressed as a
percentage.
EY (Earnings Yield): SEEQ has an EY of 4.13%. This is below the current market
average of 4.82%. EY equals 100 x (EARNINGS PER SHARE/PRICE), and is
expressed as a percentage.
EPS (Earnings Per Share): SEEQ has an EPS of $0.14 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): SEEQ has a P/E ratio of 24.23. This ratio is
computed daily based upon Price and EPS. P/E = Price/EPS.
GPE (Growth to P/E Ratio): SEEQ has a GPE of 0.91. This ratio suggests that
This ratio suggests that SEEQ 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 1.11 for SEEQ is good.
DS (Dividend Safety): SEEQ 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): SEEQ 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): SEEQ 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): SEEQ 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: SEEQ traded 170700 shares on 09/19/97.
AVG VOL(100)s: SEEQ has an Average Volume of 341682. Average Volume is 50
day moving average of daily volume as computed by VectorVest.
% VOL: SEEQ had a Volume change of -50.0% from its 50 day moving average
volume.
OPEN: SEEQ opened trading at $3.30 per share on 09/19/97.
HIGH: SEEQ traded at a high of $3.40 per share on 09/19/97.
LOW: SEEQ traded at a low of $3.30 per share on 09/19/97.
CLOSE: SEEQ Closed trading at $3.30 per share on 09/19/97.
% PRC: SEEQ showed a Price change of 0.0% from the prior day's closing price.
INDUSTRY: SEEQ has been assigned to the Electronic (Semicndtr Eqp) Group.
VectorVest classifies stocks into over 190 Industry Groups and 50 Business Sectors.
SEEQ has well below average safety with above average upside potential. It reflects a
stock which is likely to give above 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.
Thank you for your interest in VectorVest ProGraphics.
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