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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (34352)	9/10/2000 11:04:53 PM
From: deathandtaxes	Respond to of 57584

American Spirit I've been using that tool off and on for a few months and found it to be useful as long as you are realistic in your evaluation of the companys growth forthcoming. It helped me find direction with picking the semis last month during the sell off. If you use the "compare stock to competitors" it can give you a list in order of market cap which i have found to be helpful to find a few good shorting ops as well as longs

To: American Spirit who wrote (34352)	9/11/2000 12:38:14 AM
From: Rande Is	Read Replies (1) \| Respond to of 57584

I like it. It gets you thinking of other types of indicators. I would like to know about all such off-the-wall methods of maeasuring valuation, volatility, momentum or the markets in general. I have developed MANY of my own, but am not ready to unveil them yet. Tweaking them first to make sure of their usefulness.

To: American Spirit who wrote (34352)	9/11/2000 1:50:05 AM
From: Simon Thornington	Respond to of 57584

Hi all, This article explains how they calculate the Intrinsic Value. This is an excerpt, link at the bottom: "The Intrinsic Value Calculator in Stock Evaluator uses a discounted cash flow model commonly used by business appraisers like myself. Each year's projected earnings are divided by the chosen discount rate (which you can select yourself) in order to derive a "present value" of earnings. The sum of the present values, minus the company's long-term debt, yields its intrinsic value, the maximum price you should be willing to pay for a share of stock." quicken.excite.com Personally, I don't give these things a whole lot of weight, there are too many variables that make it too easy to rationalize your decision. (Goodness knows I've never done that!) It will tell you that the high-fliers are way overvalued and the dogs are way too beaten up, but I think we all knew that already. Another point to the contrary is the (quite valid) argument that current share prices reflect the consensus vote on future earnings surprises, and so the intrinsic value (if different from the current value) is going to always be built upon stale or misinformed data. Not to say I believe in an efficient market (energy trusts yielding 16% anyone?), but whenever buying dogs, I'm always plagued by the niggling suspicion that whomever is selling me their stock knows something I don't... Cheers, Simon. EDIT: grammar