Hey Friends,
I hope you had a wonderful Christmas and will have a healthy and meaningful 2020. There’s bad weather in my area as this post is written but it has almost passed now. Power outages are widespread but that’s an inconvenience. If no harm has come to life and limb, that is cause for rejoicing! […]
Hey friends. This stock market continues to pursue new record highs. As a backdrop, we are approaching a presidential election year. We have a Fed that may or may not accommodate the markets with hoped-for dovish interest rate policy going forward. We face uncertainty over what kind (if any) of tariff deal comes with China and how it will impact the markets. […]
Hey friends. When I did my doctoral work, reading accounting (and finance) research studies was a constant assignment. Numerous empirical studies found evidence that earnings management is commonplace. Managing earnings may seem reasonable since research also shows that earnings drive stock prices. But is it really wise? […]
Hey friends. My book, “Choose Stocks Wisely,” harps on the essential role of the balance sheet in proper risk assessment. Some things are worthy of harping. In my view, the balance sheet is what anchors good investment decisions. It details the nature of the assets you are buying at the time of your decision. […]
Hey Friends,
There’s no real risk assessment without balance sheet analysis. My book, “Choose Stocks Wisely,” presents two quality checks to aid in analyzing the health of the balance sheet. These checks are the Adjusted Current Ratio (ACR) and the Adjusted Tangible Stockholders’ Equity (ATSE). […]
Hey friends. My book, Choose Stocks Wisely, reflects my attempt to define a low stock price using the balance sheet as the primary tool. The book does not discuss “selling high.” When to sell is the more difficult judgment call to make as it rests more on future prospects than it does on the present substance of equity as defined by the balance sheet. […]
Hello friends. Today’s post shares what I believe is the most important part of the Choose Stocks Wisely methodology. That part is the “quality” balance sheet scorecard checkup. To discuss this is timely, I believe, as more and more people wonder where the stock market heads from here. […]
Hey friends. I don’t typically mention specific stocks in my posts as you know. Today, though, I’ll offer a rather extreme example of how chasing the hottest thing without a solid fundamental basis for doing so can lead to harmful loss to a stock portfolio.
Go here to view a Yahoo Finance page summarizing some key data for Helios and Matheson Analytics Inc. (HMNY). You can go here to view the website and specifically click on the MoviePass link to read about the arena of HMNY’s business that led to a skyrocketing price not so long ago followed by a free fall for the ages. In this Yahoo Finance link, you can see the daily price information for HMNY stock over the past 12 months. If you scroll down, you will note that the stock price closed on September 14, 2017 at $2.63 and then rose to a high price of $38.86 less than a month later on October 11. Yesterday (Friday, July 20, 2018), the price closed at $.104 per share.
Not unlike some cryptocurrency stocks of not long ago that rose feverishly only to have gravity pull them to the floor, HMNY is a story stock that for a moment was going to revolutionize how people go see movies. But the numbers didn’t add up to warrant the kind of “chasing” behavior that occurred.
Here’s an interesting article published several days ago at Seeking Alpha reflecting information about the nature of HMNY’s business model and the author’s opinion toward the business as it stands now.
Some people may have made a lot of money in HMNY’s stock. Many others probably took a really tough loss. One of the reasons I wrote Choose Stocks Wisely is because of […]
As time has passed since first publishing my book, “Choose Stocks Wisely,” in late 2013, a recurring question comes up. In fact, I’ve noted it coming up more often very recently from new purchasers of my book. I’ll express the question this way; “the screen from your book is producing almost no (to none) stocks.” I decided to share today my response to one reader over recent days because it reflects best what my thoughts are on this matter. […]
I’ve had several people ask me lately about gold and gold stocks. It is an interesting topic, for sure. Since my book Choose Stocks Wisely is about stocks, today’s post will speak of the gold commodity (which is an investment itself aside from gold stocks) only as it relates to gold common stocks. Gold closed Friday at $1,324/oz. Many gold stocks are presently trading well below their stock prices sported not all that far back when gold prices per ounce were well below the $1300s. […]
