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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (50045)	11/16/2012 12:37:25 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78745

Altman Z-score. Caveat: it has been defined for industrials mainly although later adapted for other companies. I used the original version. If someone wants to run the modified version, they are welcome. Even if I have doubts about the absolute value of the score, relative values can be enlightening: GST: -3.4 (yes, minus!) MHR: 0.1 JCP: 1.53 All companies are deep into BK prediction land. Now, we know that E&Ps have valuable assets, so bulls may claim that this counters the losses. I won't argue about this. For me, the most interesting fact is how much better MHR is compared to GST. From Z-score base, GST is pure basket case. JCP is also non industrial. Also I took the EBIT of last 9 months annualized. This is cheating a bit, since upcoming Q is the best for retailers. JCP's health will depend on results in this quarter. Maybe Piotroski score is more insightful than Z-score for these cos. I'll try that next when I have time.