Special situation stocks and value investing
Lessons on value investing, special situations, and other financial topics to further your education.
For this backtest, I’m going to be examining the Altman Z-score. Edward I. Altman published the Z-score in 1968 to to predict the probability that a firm will go into bankrupt. The Altman Z-score is a widely used and easy to calculate formula to estimate a firm’s financial distress.
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I have received several requests to provide a tutorial on how I backtest stock fundamentals using Portfolio123. My recent stock
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While Forex trading has been prevailing from the late 1970s, binary options are relatively new to the market and recently
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Binary options have become very popular recently and the trade volumes are growing at very high rate similar to forex
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A commenter on Fat Pitch Financials recently suggested that I take a look at shareholder yield. After reading my “How Does
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This is a revised version of the backtest on the free cash flow to enterprise value ratio backtest posted a
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The free cash flow to enterprise value ratio is a rather sophisticated valuation ratio that should be a part of
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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 current NCAV in the past 5 years, and are not issuing shares.
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A reduction in shares outstanding can occur as a result of a company stock buyback. A buyback is when a
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The Return on Invested Capital (ROIC) ratio is a very popular measure of company “quality” among value investors. Many even
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