JJB, VectorVest has now increased the calculated value of VARL to $16.10 per share.
Stock Analysis of Vari L Co.
Thank you for requesting an analysis of Vari L Co. from VectorVest ProGraphics. The ticker symbol for Vari L Co. is VARL.
VARL is traded on the NASDAQ.
PRICE: VARL closed on 16-Mar-1998 at $10.20 per share.
VALUE: VARL has a Value of $16.10 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): VARL has an RV of 1.43. On a scale of 0.00 to 2.00, an RV of 1.43 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): VARL has an RS rating of 0.96. On a scale of 0.00 to 2.00, an RS of 0.96 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): VARL has an RT rating of 1.39. On a scale of 0.00 to 2.00, an RT of 1.39 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): VARL has a VST-Vector rating of 1.28. On a scale of 0.00 to 2.00, an VST of 1.28 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 withlow 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): VARL has a GRT of 21 % 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): VARL 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: VARL has a Stop-Price of$ 9.40 per share. This is $0.80 or7.8% belowits 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): VARL 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): VARL 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): VARL has an EY of 6.05%. This is above the current market average of 4.88%. EY equals 100 x
(EARNINGS PER SHARE/PRICE), and is expressed as a percentage.
EPS (Earnings Per Share): VARL has an EPS of $0.62 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): VARLhas a P/E ratio of 16.52. This ratio is computed daily based upon Price and EPS. P/E =
Price/EPS.
GPE (Growth to P/E Ratio): VARL has a GPE of 1.27. This ratio suggests that This ratio suggests that VARL is undervalued.
Growth to P/E ratio is a popular measure of stockvaluation which compares Earnings Growth Rate (GRT) to Price Earnings ratio
(P/E). A stock is considered to be undervalued when GPE isgreater than 1.00, and vice-versa. VectorVest believes that RV is a
much better indicator of long-term value. The RV of 1.43 for VARL is excellent.
DS (Dividend Safety): VARL 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 areabove average in safety.
RISK (Dividend Risk): VARL 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): VARL 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): VARL 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: VARL traded 55500 shares on 16-Mar-1998.
AVG VOL(100)s: VARL has an Average Volume of 46734. Average Volume is 50 day moving average of daily volume as
computed by VectorVest.
% VOL: VARL had a Volume change of 18.8% from its 50 day moving average volume.
OPEN: VARL opened trading at $10.10 per share on 16-Mar-1998.
HIGH: VARL traded at a high of $10.40 per share on 16-Mar-1998.
LOW: VARL traded at a low of $10.10 per share on 16-Mar-1998.
CLOSE: VARL Closed trading at $10.20 per share on 16-Mar-1998.
% PRC: VARL showed a Price change of -1.9% from the prior day's closing price.
INDUSTRY: VARL has been assigned to the Electronic (Components) Group. VectorVest classifies stocks into over 190
Industry Groups and 50 Business Sectors.
VARL 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.
We hope you find your individual stock analysis informative and enlightening. It is provided to allow you to view the data we provide
on over 6000 stocks every day along with explanations of each parameter to help you evaluate your selection. As a VectorVest
subscriber you would receive a complete download of the same data on more than 6000 stocks on a daily basis. This would be
merged with the historical database residing on your computer. VectorVest Prographics gives you the the ability to sort, filter, and
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