CAND...
This is what VectorVest has to say...
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PRICE: CAND closed on 27-Mar-1998 at $8.30 per share.
VALUE: CAND has a Value of $12.40 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): CAND has an RV of 1.20. On a scale of 0.00 to 2.00, an RV of 1.20 is
very 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): CAND has an RS rating of 0.74. On a scale of 0.00 to 2.00, an RS of
0.74 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): CAND has an RT rating of 1.71. On a scale of 0.00 to 2.00, an RT of
1.71 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): CAND has a VST-Vector rating of 1.30. On a scale of 0.00 to 2.00, an
VST of 1.30 is excellent. 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): CAND has a GRT of 12 % per year. This is good. 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): CAND 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.
Jim |
