Stock Analysis of Applied Signal
Thank you for requesting an analysis of Applied Signal from VectorVest ProGraphics.
The ticker symbol for Applied Signal is APSG. APSG is traded on the NASDAQ.
PRICE: APSG closed on 03-Dec-1997 at $14.80 per share.
VALUE: APSG has a Value of $18.10 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): APSG has an RV of 1.35. On a scale of 0.00 to 2.00, an RV
of 1.35 is excellent. 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): APSG has an RS rating of 0.93. On a scale of 0.00 to 2.00,
an RS of 0.93 is fair. 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): APSG has an RT rating of 1.41. On a scale of 0.00 to 2.00,
an RT of 1.41 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): APSG has a VST-Vector rating of 1.25. On a scale of 0.00 to
2.00, an VST of 1.25 is very 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): APSG has a GRT of 26 % 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): APSG has a Buy 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: APSG has a Stop-Price of $12.80 per share. This is $2.00 or
13.5% 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): APSG 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): APSG 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): APSG has an EY of 4.94%. This is below the current market
average of 5.02%. EY equals 100 x (EARNINGS PER SHARE/PRICE), and is
expressed as a percentage.
EPS (Earnings Per Share): APSG has an EPS of $0.73 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): APSG has a P/E ratio of 20.26. This ratio is
computed daily based upon Price and EPS. P/E = Price/EPS.
GPE (Growth to P/E Ratio): APSG has a GPE of 1.28. This ratio suggests that
This ratio suggests that APSG is undervalued. 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 1.35 for APSG is excellent.
DS (Dividend Safety): APSG 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): APSG 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): APSG 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): APSG 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: APSG traded 67800 shares on 03-Dec-1997.
AVG VOL(100)s: APSG has an Average Volume of 162992. Average Volume is
50 day moving average of daily volume as computed by VectorVest.
% VOL: APSG had a Volume change of -58.4% from its 50 day moving average
volume.
OPEN: APSG opened trading at $15.00 per share on 03-Dec-1997.
HIGH: APSG traded at a high of $15.00 per share on 03-Dec-1997.
LOW: APSG traded at a low of $13.60 per share on 03-Dec-1997.
CLOSE: APSG Closed trading at $14.80 per share on 03-Dec-1997.
% PRC: APSG showed a Price change of -1.3% from the prior day's closing price.
INDUSTRY: APSG has been assigned to the Telecomm (Equipment) Group.
VectorVest classifies stocks into over 190 Industry Groups and 50 Business Sectors.
APSG has about average safety with well above average upside potential. It reflects a
stock which is likely to give well above average, relatively consistent 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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