To: dreamer who wrote (90664 ) 8/23/2001 8:20:09 AM From: Chuca Marsh Respond to of 150070 UP 4 cents VNCI preopen: nasdaq.com Back | See All Bios Validea Technology Strategy | Momentum-Oriented Internet Investing The Internet revolution is transforming the world, and hundreds of exciting young companies are a part of that revolution. Some will fade, but some will become the titans of tomorrow. The challenge for investors is to find a way to identify the most promising companies today, even though they may not yet be profitable and thus not readily identifiable by traditional, earnings-based metrics. The Validea Technology Strategy, a proprietary methodology developed by Validea.com, is a growth and momentum strategy that takes these factors into account. It searches out companies that have strong current revenue growth and strong future earnings potential, operate in leading industries, and have significant levels of insider and institutional ownership (the former aligns management's interests with shareholders; the latter provides an important undercurrent of support for the stock). The strategy also favors companies whose stock price has exhibited strength relative to the overall stock market. It is a strategy that will appeal to investors seeking a well-reasoned methodology for valuing Internet and Internet-related stocks. abovenasdaq.com and 33% also Marty Zwieg: Guru Bios Back | See All Bios Martin Zweig | Conservative Growth Investor Martin Zweig is a growth investor with a serious conservative streak. A renowned money manager, newsletter writer and frequent guest on the PBS television series "Wall Street Week," Zweig knows that money lost is money that's hard to recoup. Accordingly, he searches for stocks that meet a long host of earnings criteria. Quarterly earnings, for example, should be positive and growing faster than they were (a) a year ago, (b) in the preceding three quarters, and (c) over the preceding three years. Annual earnings should be up for at least the past five years. And sales should be growing as fast as or faster than earnings, since cost-cutting and other non-revenue-producing measures alone can't support earnings growth forever. Finally, Zweig suggests that companies have a price-to-earnings ratio of at least 5—to weed out weak companies—but no more than three times the current market p/e or 43, whichever is lower. His strategy makes sense for investors who like the potential of growth companies but aren't willing to pay premium prices for them. above URLnasdaq.com And a 43 % at Contrarian : "".. LOOK AT THE TOTAL DEBT/EQUITY: [PASS] All Star Guru Scorecard [] [] 0% [] [] 14% [] [] 0% [] [] 33% [] [] 16% [] [] 43% [] [] 33% [] [] 25% [] [] 25% Like the David Dreman strategy? Get more ideas that pass this analysis Detailed Analysis Guru Score: 43% Help MARKET CAP: [FAIL] Medium to large-sized companies (the largest 1500 companies) should be chosen, because they are more in the public eye. Furthermore, the investor is exposed to less risk of "accounting gimmickry", and companies of this size have more staying power. VNCI has a market cap of 6.0 million, therefore failing the test. EARNINGS TREND: [PASS] A company should show a rising trend in the reported earnings for the most recent quarters. VNCI's EPS for the past 2 quarters, (from earliest to most recent quarter) -0.07, 0.08 have been increasing, and therefore passes. EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: [FAIL] This methodology likes to see companies with an EPS growth rate higher than the S&P in the immediate past and a likelihood that this trend will continue in the near future. Unfortunately, we do not have sufficient data available onVNCI at this time. This methodology would utilize four separate criteria to determine if VNCI is a contrarian stock. In order to eliminate weak companies we have stipulated that the stock should pass at least two of the following four major criteria in order to receive "Some Interest". P/E RATIO: [FAIL] The P/E of a company should be in the bottom 20% of the overall market. VNCI's P/E is currently not available which means an opinion cannot be rendered. PRICE/CASH FLOW (P/CF) RATIO: [PASS] The P/CF of a company should be in the bottom 20% of the overall market. VNCI's P/CF of -4.90 meets the bottom 20% criterion (below 6.49) and therefore passes this test. PRICE/BOOK (P/B) VALUE: [FAIL] The P/B value of a company should be in the bottom 20% of the overall market. VNCI's P/B is currently 8.69, which does not meet the bottom 20% criterion (below 1.58), and it therefore fails this test. PRICE/DIVIDEND (P/D) RATIO: [FAIL] The P/D ratio for a company should be in the bottom 20% of the overall market (that is the yield should be in the top 20%). VNCI's P/D is not available, and hence an opinion cannot be rendered at this time. This methodology maintains that investors should look for as many healthy financial ratios as possible to ascertain the financial strength of the company. These criteria are detailed below. CURRENT RATIO: [FAIL] A prospective company must have a strong Current Ratio (greater than or equal to the average of it's industry [3.82] or greater than 2). This is one identifier of financial strong companies, according to this methodology. VNCI's current ratio of 1.00 fails the test. PAYOUT RATIO: [PASS] A good indicator that a company has the ability to raise its dividend is a low payout ratio. The payout ratio for VNCI is 0.00%. Unfortunately, its historical payout ratio is not available. Nonetheless it passes the payout criterion, as this is a very low payout. RETURN ON EQUITY: [FAIL] The company should have a high ROE, as this helps to ensure that there are no structural flaws in the company. VNCI's ROE is not available which means an opinion cannot be given at this time. PRE-TAX PROFIT MARGINS: [FAIL] This methodology looks for pre-tax profit margins of at least 8%, and considers anything over 22% to be phenomenal. VNCI's pre-tax profit margin is -69.30%, thus failing this criterion. YIELD: [FAIL] The company in question should have a yield that is high and that can be maintained or increased. VNCI's current yield is 0.00%, while the market yield is 1.57%. VNCI fails this test. LOOK AT THE TOTAL DEBT/EQUITY: [PASS] The company must have a low debt to equity ratio, which indicates a strong balance sheet. The Debt/Equity ratio should not be greater than 20%. VNCI's Total Debt/Equity of 0.00% is considered exceptional. .."" above URL:nasdaq.com Well, VNCI is a wildcard indeed. ChucaBoomBoomaaa33-43%age-a-point made