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Monthly Archives: August 2014

Book Value and Market Value of Equity

The term book value is an accounting term that simply refers to the value(s) we record on the books for the various accounts tracked by a company. We track the values of the resources a company has to work with, namely assets. We track the values of the obligations assumed by the company to help support its asset structure, namely liabilities. The excess of the assets we record over the liabilities we record is the equity, the remainder that represents the net book value of the company. […]

August 30th, 2014|Balance Sheet, book value, Equity, market value|1 Comment
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Another Choose Stocks Wisely Seminar at MSU

Mississippi State University graciously hosted the second Choose Stocks Wisely seminar at its Meridian campus on July 31, 2014. The first one was held back in December of 2013, shortly after my book, “Choose Stocks Wisely” was released. The seminar was held in the same room of the MSU facility as in December. […]

August 22nd, 2014|Balance Sheet, In The News, seminars|3 Comments
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Spiritual Wealth

Last week, I talked about the importance of investing in wealth-building businesses over pursuing momentary profits. If I’ve been successful at my stock investments such that my portfolio reflects more wealth, it can bring a certain sense of security, financially speaking. One need only consider several years back during the recession-beaten stock market of 2008 and 2009 to see how tenuous material possessions are, though, and that they cannot provide lasting peace. […]

August 16th, 2014|eternal life, Trust the Lord|2 Comments
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Whatever Happened to Building “Wealth?”

If you’ve owned stocks before and observed stock price behavior, you’ve realized how sensitive stock prices are to each successive quarterly earnings report. If the earnings report pleases the investment community, the stock usually reacts favorably and does so to the degree of momentary pleasure derived. The same can be said about the negative impact to stock prices when the earnings report disappoints market participants. […]

August 9th, 2014|Balance Sheet, earnings management, wealth management|0 Comments
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Managing Debt; It’s Serious Business

I see so many corporate balance sheets of large companies today, even companies that pay dividends, which reflect liabilities (obligations) that significantly exceed assets (resources).  When you exclude any intangible assets (goodwill too) from the asset base, the liabilities are that much greater than the assets. Of course, this means that the companies reflect negative equity since assets less liabilities leave equity. Typically long term debt forms a large portion of the company obligations in these situations where liabilities are greater than assets.

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August 2nd, 2014|Balance Sheet, financial leverage|2 Comments
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