Tags |
|
|
Links |
|
|
Answer Upon - Stock Valuation Using The SMP Model
So, you’ve created a Website to highlight your realty services and listings. Now all you have to do is wait for the customers to roll in -- right? Wrong. Putting up a Website is only the first step. Now you have to fine tune your site’s descriptors to boost its search engine ranking when prospective clients explore the Internet hunting for a REALTOR®. It does you little good to have a Website if no one can find it. Fortunately, there are a few simple steps you can take that increase your odds of being noticed when buyers or sellers turn to the Web to find a real estate agent.Ideally, it
What kind of performance has the Model returned? In February, 2004, I started tracking a portfolio of 10 stocks, selected by the SMP Model. By April, 2005, that portfol
Since releasing my product 'Auction Affiliate Secrets' which was the first ever product to cover the eBay affiliate program nearly two years ago, people consider me to be an eBay guru. Now I don't know about that but I do know everything there is to know about the eBay affiliate program so people tend to listen to what I say.It is for this reason that I have written this review for the product Build a Niche Store.Possibly the most overlooked affiliate marketing program on the internet, the eBay affiliate program has yet to be exploited in ways that other programs such as AdSense and A
The SMP (Stock Market Plus) Stock Valuation Model is founded on the idea that in any market, on average, an investor will beat the market by purchasing undervalued securities at bargain prices. The model suggests building a diversified portfolio of securities that will (theoretically) surpass their current value even in a dismal bear market over a period of 10 years. The SMP Model is extremely sensible. It takes a stock's NTA (Net Tangible Assets), factors in projected growth, and flavors the results with a little market pessimism for good measure. The model is simple enough, but requires research that you can't obtain with your average stock screener.
How do I know that the SMP Model works? In early 2004, tired of my losses that arose from trying to play the market's short-term ups and downs, I came up with an idea for long-term investing. I reasoned that a security's intrinsic value was its current NTA per share, plus its projected Earnings Per Share (EPS) growth, year-over-year going forward, tempered by the realistic possibility of an extended bear market. Those stocks that could come out ahead of their current prices over time, even in a bad market, were the ones that I wanted to consider. I cut the projections off at ten years, because that provided me with a realistic long-term timeline to watch the stocks under consideration. This idea about stock valuation is probably not unique, and I do not claim to be the first person to ever think of stocks in this light. What I like about the model is that it takes away the guesswork. You plug in the numbers, and let the projections speak for themselves.
What kind of performance has the Model returned? In February, 2004, I started tracking a portfolio of 10 stocks, selected by the SMP Model. By April, 2005, that portfoli
In part one of this series we focused on setting up a basic form on your website. We discussed the Form Element Attributes and began the Form Element Properties. In part two of this series, we will continue with the Form Element Properties and move on to some more advanced form options.If you missed part one, you can find it here: http://www.web-source.net/html_forms1.htmIn part one of this series, we went over Text boxes, Hidden, Password and the Checkbox Form Element Properties. We will now continue with the remaining properties.RADIO BUTTON<
How do I know that the SMP Model works? In early 2004, tired of my losses that arose from trying to play the market's short-term ups and downs, I came up with an idea for long-term investing. I reasoned that a security's intrinsic value was its current NTA per share, plus its projected Earnings Per Share (EPS) growth, year-over-year going forward, tempered by the realistic possibility of an extended bear market. Those stocks that could come out ahead of their current prices over time, even in a bad market, were the ones that I wanted to consider. I cut the projections off at ten years, because that provided me with a realistic long-term timeline to watch the stocks under consideration. This idea about stock valuation is probably not unique, and I do not claim to be the first person to ever think of stocks in this light. What I like about the model is that it takes away the guesswork. You plug in the numbers, and let the projections speak for themselves.
What kind of performance has the Model returned? In February, 2004, I started tracking a portfolio of 10 stocks, selected by the SMP Model. By April, 2005, that portfol
I am not a business major by any means, but I have taken an interest in business, particularly home businesses, since I was in middle school. Even though I have had an interest in business for quite some time, I chose not to continue my college studies within the realm of business as a business major, but rather within science. I currently attend Kansas State University and I am an animal science major. Yet, even with giving my preference to science, I still continue my research of entrepreneurship, businesses, and home based businesses.Everyday, I see ads over the internet offering ways
How do I know that the SMP Model works? In early 2004, tired of my losses that arose from trying to play the market's short-term ups and downs, I came up with an idea for long-term investing. I reasoned that a security's intrinsic value was its current NTA per share, plus its projected Earnings Per Share (EPS) growth, year-over-year going forward, tempered by the realistic possibility of an extended bear market. Those stocks that could come out ahead of their current prices over time, even in a bad market, were the ones that I wanted to consider. I cut the projections off at ten years, because that provided me with a realistic long-term timeline to watch the stocks under consideration. This idea about stock valuation is probably not unique, and I do not claim to be the first person to ever think of stocks in this light. What I like about the model is that it takes away the guesswork. You plug in the numbers, and let the projections speak for themselves.
What kind of performance has the Model returned? In February, 2004, I started tracking a portfolio of 10 stocks, selected by the SMP Model. By April, 2005, that portfol
When you’re a leader, you have to look and sound like a leader -- every time you speak. Your organization's success and your reputation are on the line. Try this:1. Project an Authentic Sense Of Presence. You don’t have to wow your audience with charisma. But you do have to let them know who you are and what you stand for. Speak with conviction about what matters to you, and let your image take care of itself. Be your best self, speaking the truth as you know it, and audiences will think you’re charismatic even if you don’t.2. Build Each Speech Around a Single, Clear Mes
What kind of performance has the Model returned? In February, 2004, I started tracking a portfolio of 10 stocks, selected by the SMP Model. By April, 2005, that portfol
Starting a business with reprint rights products would have to be one of the best decisions I ever made.I started out with just one product – a book about email marketing and finally after 12 months of banging my head against a wall trying to make money online, I started to make sales.Seven Things to Keep in Mind When Selling Reprint Rights Products1. You will do better if you have at least a few high-ticket items. Few people realize that it is just as easy to sell a $597 package as it is to sell a $27 one. I strongly suggest that you get at least a few big-ti
What kind of performance has the Model returned? In February, 2004, I started tracking a portfolio of 10 stocks, selected by the SMP Model. By April, 2005, that portfolio had produced over a 17% gain, in a little over a year. Now, again, if you're looking for 200% gains, go try Vegas or the racetrack. Realistic, long-term gains are slow and steady, and require diversification of assets for self-preservation. By, comparison, the stock markets have been pretty even (zero gain) over that time, with the S & P outperforming the Dow and Nasdaq.
What kind of stocks does the model like? Well, I'll share some that it doesn't like...Walmart, Microsoft, Gateway, EBAY, Oracle...some real heavyweights. Now, for ones that the SMP Model projects to be worth more than their current prices in ten years...Providian, Washington Mutual, LJ International, Ford, General Motors. I'll give you a larger list later. But, now, I want to give you the formula for the SMP Model so you can build a sensible portfolio today...
First, a couple of definitions:
NTA = Net Tangible Assets = (Total Assets - Intangible Assets - Liabilities)
EPS = Earnings Per Share = Total Net Income/Outstanding Shares
EPS(0) = EPS(current year) = projected EPS (current year) * discount rate (I use .12)
GRW = Projected EPS Growth Rate (use 5-yr or 10-yr if available)
Now here's the formula...
SMP(value) = current NTA/share + EPS(0) + [EPS(0) * (1 + GRW * discount (.12))](= EPS(1)) + [EPS(1) * (1 + GRW * discount (.12))](= EPS(2)) + [EPS(3) + EPS(4) + ... + EPS(10)
OK, the formula's a little nasty, but if you plug it in to a spreadsheet, it works quite well. Just so you know that you're on target with your math, here's a sample computation for (WM) Washington Mutual (these numbers may be slightly different than current values):
NTA = 13.951 (in billions) Shares = .873 NTA/Share = 13.951/.873 = 15.98 (that
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.hubyou.info/article/117981/hubyou-Stock-Valuation-Using-The-SMP-Model.html">Stock Valuation Using The SMP Model</a>
BB link (for phorums):
[url=http://www.hubyou.info/article/117981/hubyou-Stock-Valuation-Using-The-SMP-Model.html]Stock Valuation Using The SMP Model[/url]
Related Articles:
Some Lean Six Sigma Tools - Analyse, Improve and Control
Google has an Achilles Heal - Will Their Competitors Notice?
Bookmark it:
|