an analysis of MRVC:-
Stock Analysis of M R V Comm
Thank you for requesting an analysis of M R V Comm from VectorVest ProGraphics. The ticker symbol for M R
V Comm is MRVC. MRVC is traded on the NASDAQ and options are available on this stock.
PRICE: MRVC closed on 05-Nov-1997 at $27.90 per share.
VALUE: MRVC has a Value of $38.00 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): MRVC has an RV of 1.72. On a scale of 0.00 to 2.00, an RV of 1.72 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): MRVC has an RS rating of 1.27. On a scale of 0.00 to 2.00, an RS of 1.27 is very
good. 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): MRVC has an RT rating of 0.69. On a scale of 0.00 to 2.00, an RT of 0.69 is poor.
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): MRVC has a VST-Vector rating of 1.26. On a scale of 0.00 to 2.00, an VST of 1.26 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 with low 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): MRVC has a GRT of 40 % 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): MRVC has a Hold 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: MRVC has a Stop-Price of $27.50 per share. This is $0.40 or 1.4% below its 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): MRVC 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): MRVC has a DY of 0.0 percent. This is below the current market average of 1.3
percent. DY equals 100 x (DIV/PRICE), and is expressed as a percentage.
EY (Earnings Yield): MRVC has an EY of 3.94%. This is below the current market average of 4.97%. EY
equals 100 x (EARNINGS PER SHARE/PRICE), and is expressed as a percentage.
EPS (Earnings Per Share): MRVC has an EPS of $1.10 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): MRVC has a P/E ratio of 25.41. This ratio is computed daily based upon
Price and EPS. P/E = Price/EPS.
GPE (Growth to P/E Ratio): MRVC has a GPE of 1.57. This ratio suggests that This ratio suggests that
MRVC is undervalued. 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
1.72 for MRVC is excellent.
DS (Dividend Safety): MRVC 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 are above average in safety.
RISK (Dividend Risk): MRVC 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): MRVC 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): MRVC 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: MRVC traded 562500 shares on 05-Nov-1997.
AVG VOL(100)s: MRVC has an Average Volume of 493054. Average Volume is 50 day moving average of
daily volume as computed by VectorVest.
% VOL: MRVC had a Volume change of 14.1% from its 50 day moving average volume.
OPEN: MRVC opened trading at $29.80 per share on 05-Nov-1997.
HIGH: MRVC traded at a high of $30.00 per share on 05-Nov-1997.
LOW: MRVC traded at a low of $27.80 per share on 05-Nov-1997.
CLOSE: MRVC Closed trading at $27.90 per share on 05-Nov-1997.
% PRC: MRVC showed a Price change of -3.8% from the prior day's closing price.
INDUSTRY: MRVC has been assigned to the Telecomm (Equipment) Group. VectorVest classifies stocks into
over 190 Industry Groups and 50 Business Sectors.
MRVC has well above average safety with well above average upside potential. It reflects a stock which is likely
to give well above average, quite 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. |
