TECHNICAL ANALYSIS OF POWERWAVE!!!!!!!!!
PRICE: PWAV closed on 13-Feb-1998 at $18.60 per share.
VALUE: PWAV has a Value of $39.90 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): PWAV has an RV of 1.61. On a scale of 0.00 to 2.00, an RV of 1.61 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): PWAV has an RS rating of 1.00. On a scale of 0.00 to 2.00, an RS of
1.00 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.
VST-Vector (VST): PWAV has a VST-Vector rating of 1.08. On a scale of 0.00 to 2.00, an
VST of 1.08 is fair. 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): PWAV has a GRT of 28 % 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.
EY (Earnings Yield): PWAV has an EY of 6.54%. This is above the current market average of
5.04%. EY equals 100 x (EARNINGS PER SHARE/PRICE), and is expressed as a percentage.
EPS (Earnings Per Share): PWAV has an EPS of $1.22 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): PWAV has a P/E ratio of 15.30. This ratio is computed daily
based upon Price and EPS. P/E = Price/EPS.
GPE (Growth to P/E Ratio): PWAV has a GPE of 1.83. This ratio suggests that This ratio
suggests that PWAV 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 1.61 for PWAV is excellent.
VOL(100)s: PWAV traded 3778700 shares on 13-Feb-1998.
AVG VOL(100)s: PWAV has an Average Volume of 1138604. Average Volume is 50 day
moving average of daily volume as computed by VectorVest.
% VOL: PWAV had a Volume change of 231.9% from its 50 day moving average volume.
OPEN: PWAV opened trading at $16.80 per share on 13-Feb-1998.
HIGH: PWAV traded at a high of $19.10 per share on 13-Feb-1998.
LOW: PWAV traded at a low of $15.90 per share on 13-Feb-1998.
CLOSE: PWAV Closed trading at $18.60 per share on 13-Feb-1998.
% PRC: PWAV showed a Price change of 15.5% from the prior day's closing price.
INDUSTRY: PWAV has been assigned to the Electronic (Misc Products) Group. VectorVest
classifies stocks into over 190 Industry Groups and 50 Business Sectors.
PWAV 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. |
