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

To: Graham Osborn who wrote (57922)	9/5/2016 5:12:16 PM
From: E_K_S	Read Replies (1) \| Respond to of 78666

I use a modified GN calculation as discussed here in the past. I do not always exclude a stock that may have one or two quarters of losses over the past 10 years as Graham does. A response from Paul Senior (2/23/2012) Graham number: EKS, I suggest again that you are using the Graham number in a way that's different from what Dr. Graham did. Namely he used it for the Defensive Investor and was applied to stocks with "some earnings for the common stock in each of the past ten years" and "uninterrupted payments ('dividend record') for at least the past 20 years". (Intelligent Investor, pp. 183-184) FWIW, I use a modified GN calculation: My application is a modified Graham Number as I do not look at the 20 year "uninterrupted" dividend payment history or 10 years of positive earnings. I am looking at the tangible BV as this information is now available. Earnings are very important but I may take exception if analysts are positive on their future estimate(s), past earnings are positive for the last 5 years and/or there are reasonable explanations for one time adjustments that may have resulted in a one time loss over the last 5 years. ------------------------------------------------------- So you are correct in your observation. EKS