Are binary options trading just a big scam?

Binary options have become very popular recently and the trade volumes are growing at very high rate similar to forex trading. It has gained huge reputation amongst novice investors who prefer online trading because of its simplicity and huge payouts. As the name implies, binary options has two possible outcomes: either the trader wins and

Mebane Faber Shareholder Yield Backtest

A commenter on Fat Pitch Financials recently suggested that I take a look at shareholder yield.  After reading my “How Does a Change in Shares Outstanding Impact Stock Returns?” article, they suggested that dividend investors might also be interested in shareholder yield, and also the related Mebane Faber version of shareholder yield.   I was not

Free Cash Flow to Enterprise Value Backtest – $50 Million Minimum Market Cap

This is a revised version of the backtest on the free cash flow to enterprise value ratio backtest posted a few weeks ago.  The free cash flow to enterprise value ratio is a rather sophisticated valuation ratio that should be a part of every value investors toolkit.  It is inspired in part by the discounted

Poll Results: Minimum Market Capitalization for Backtests

The poll results are in for the minimum market capitalization requirement for backtest on Fat Pitch Financials.  In that poll I asked, “What minimum market capitalization do you prefer for backtests on Fat Pitch Financials?”  The options respondents could choose were: $50 million (old minimum)  $1 billion (new minimum to match S&P 500) Other The

What minimum market capitalization do you prefer for backtests on Fat Pitch Financials?

Please respond to the poll below. What minimum market capitalization do you prefer for backtests on Fat Pitch Financials? $50 million (old minimum) $1 billion (new minimum to match S&P 500) Other Please Specify: Poll Maker

Free Cash Flow to Enterprise Value Backtest

The free cash flow to enterprise value ratio is a rather sophisticated valuation ratio that should be a part of every value investors toolkit.  It is inspired in part by the discounted cash flows method of company valuation. I have previously backtested the price to free cash flow ratio, so it is high time that I

How to Avoid Value-Traps with Net-Net Stocks

Net-net stocks are those which sell below liquidation value and are major bargains. Avoid being a victim of value traps by only investing in net-nets which: Generate revenue, experience NCAV Burn of less than 25% annually, aren’t based in China or if you are risk averse, aren’t Chinese, have sold at a price above the

Reverse Mortgages Are Worth a Second Look

It wasn’t that long ago that everywhere you looked you found an article about how expensive reverse mortgages were. Many borrowers were put off by a loan that had the regular loan costs and then the mortgage insurance costs added as well that could total ten thousand dollars or more on top of that. But

How Does a Change in Shares Outstanding Impact Stock Returns?

A reduction in shares outstanding can occur as a result of a company stock buyback. A buyback is when a company repurchases its stock with the goal of reducing the number of its share on the market. As you can imagine, a reduction in shares outstanding is likely to impact stock returns. However, I was not

Top Articles of 2015 on Fat Pitch Financials

Happy New Year! As you prepare for 2016, here are the top 5 articles visited on Fat Pitch Financials in 2015: Piotroski F-Score Backtest Return on Enterprise Value (ROEV) Backtest Price to Free Cash Flow Ratio Backtest Piotroski Score Backtest Part 2 Return on Invested Capital (ROIC) Backtest It looks like my stock backtesting articles were