CKSG is a buy.
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Stock Analysis of C K S Group
Thank you for requesting an analysis of C K S Group from VectorVest
ProGraphics. The ticker symbol for C K S Group is CKSG. CKSG is
traded on the NASDAQ and options are available on this stock.
PRICE: CKSG closed on 17-Apr-1998 at $26.30 per share.
VALUE: CKSG has a Value of $12.10 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): CKSG has an RV of 0.69. On a scale of 0.00
to 2.00, an RV of 0.69 is poor. 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): CKSG has an RS rating of 0.79. On a scale
of 0.00 to 2.00, an RS of 0.79 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): CKSG has an RT rating of 1.74. On a scale
of 0.00 to 2.00, an RT of 1.74 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): CKSG has a VST-Vector rating of 1.21. On a
scale of 0.00 to 2.00, an VST of 1.21 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): CKSG has a GRT of 10 % per year. This is
fair. 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): CKSG 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: CKSG has a Stop-Price of$ 22.80 per share. This is
$3.50 or13.3% 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): CKSG 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): CKSG 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): CKSG has an EY of 2.97%. This is below the
current market average of 4.68%. EY equals 100 x (EARNINGS PER
SHARE/PRICE), and is expressed as a percentage.
EPS (Earnings Per Share): CKSG has an EPS of $0.78 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): CKSG has a P/E ratio of 33.69.
This ratio is computed daily based upon Price and EPS. P/E =
Price/EPS.
GPE (Growth to P/E Ratio): CKSG has a GPE of 0.30. This ratio
suggests that This ratio suggests that CKSG 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 0.69 for CKSG is poor.
DS (Dividend Safety): CKSG 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): CKSG 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): CKSG 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): CKSG 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: CKSG traded 416700 shares on 17-Apr-1998.
AVG VOL(100)s: CKSG has an Average Volume of 247092.
Average Volume is 50 day moving average of daily volume as computed
by VectorVest.
% VOL: CKSG had a Volume change of 68.6% from its 50 day
moving average volume.
OPEN: CKSG opened trading at $27.00 per share on 17-Apr-1998.
HIGH: CKSG traded at a high of $27.50 per share on 17-Apr-1998.
LOW: CKSG traded at a low of $25.80 per share on 17-Apr-1998.
CLOSE: CKSG Closed trading at $26.30 per share on 17-Apr-1998.
% PRC: CKSG showed a Price change of 1.1% from the prior day's
closing price.
INDUSTRY: CKSG has been assigned to the Advertising Group.
VectorVest classifies stocks into over 190 Industry Groups and 50
Business Sectors.
CKSG has well below average safety with well below average upside
potential. It reflects a stock which is likely to give well below
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. |
