Genco Shipping & Trading: Value Investment in a Rebounding Industry [View article]
False Conviction we appreciate the response and most importantly respect your opinion as well. For every investment debate there are always two sides and we enjoy that reality because it makes things more interesting. Ultimately, time will tell who is correct and who is incorrect.
Generally we make forecasts and assumptions relative to a 12-month rolling period. Unfortunately, we do not divulge every single piece assumption and or the information that led us to them as our model is proprietary in nature. We're sure you can understand this since you have you're own proprietary software for what you offer.
In terms of general financial modeling anytime one increases the Discount Rate (WACC) the fair value estimate will inherently be reduced. We prefer not to use or be skewed by the assumptions of other analysts for our modeling. In our opinion the discount rate is fair given the current equity and debt structure of the firm.
Ultimately, the true beauty of corporate finance, forecasting the fair of a company's stock, and financial modeling is that people from all over the world have access to the same information but come up with different conclusions about the company.
You are correct in that the dividend yield is incorrect. We are working to have this fixed and we apologize for the typo.
When looking at the topic of Beta both Yahoo:Finance and Google:Finance list different betas. Having your CFA designation we're sure you understand Beta can be calculated in more than one way and that it will inherently change over time due to changes in volatility.
Finally, you did not reference the correct equation for Financial Leverage. Instead, you incorrectly provided the Debt/Equity ratio. We know it was an honest mistake. The Financial Leverage Ratio is as follows:
=Average Total Assets/Average Total Equity
The link below is to the CFA glossary relative to Financial Leverage:
We have also seen Financial Leverage calculated in more than one form but this is the way the CFA institute views it. We thought the link would be a good reference for users in general.
Thank you for pointing out the typo and have a great day.
10 Expensive Dividend Stocks Riding On Bullish Momentum [View article]
Binary
The financial markets are constantly changing & to expect these performance numbers to never change isn't realistic. Further, given the fact that the market is swinging well over 100+ points on the Dow 30 on almost any given day only cements the point that performance numbers can and will inherently change quickly by their very nature. Finally, articles are not reviewed and posted in literal real time on SA so there may be some slight information delays. Thank you for understanding.
10 Undervalued Small Cap Stocks With Large Amounts Of Cash [View article]
Goodoboy
Great question. There is no exact number but generally anything greater than 10% raises some type of flag for the better or the worse in our view. Food for thought.
10 Highly Leveraged Dividend Stocks With Poor Profitability [View article]
Zacherchat
Thank you for pointing out the dividend yield discrepancy. We're notifying SA currently on this topic. The Operating Margin was in reference for the full year of 2010. Have a great day!
10 Overvalued Dividend Stocks With Poor Liquidity [View article]
Das555
You bring up a good point in that RGNC is an MLP, which makes it more unique. Still, this is a business plain and simple. Unique tax benefits and distribution criteria to shareholders do not change the fact that the firm has short-term obligations and long-term liabilities that must be handled. What happens if they have some type of accident at a facility? They can't just shrug their shoulders and say "hey this won't affect our liquidity as a firm, our dividend payments, and or impact us adversely because we're an MLP."
Based on our information the Payout Ratio (TTM) for for RGNC is 970.54. Our understanding of the Payout Ratio is as follows:
Payout Ratio - Trailing 12 Months
Payout ratio is calculated by dividing dividends declared for the indicated 12 month period by net income for the same period of time.
Thus what RGNC is currently yielding and what it has generated as a company in the last twelve months relate. As far as we can tell trailing earnings will not cover the yield illustrated. Of course they can take out debt or some other sort of financing to pay the current yield. As with many MLP's the dividend is often variable and contingent on what the firm earns, commodity pricing risk, and other variables.
We are much more comfortable with BPT & SJT relative to MLP's. If this was simply a EPS topic then every MLP by this logic should have an astronomical PE ratio but they don't. Plus, plenty of companies that aren't MLP's play the "tax game" just as well. GE & Google come to mind. Last, to write off standard financial health metrics on any company simply because of a tax classification (MLP's) or unique characteristics would be short sighted.
Genco Shipping & Trading: Value Investment in a Rebounding Industry [View article]
10 Foreign Growth-Focused Dividend Stocks You Should Be Aware Of In Case The U.S. Goes Over The Fiscal Cliff [View article]
I've submitted an edit to get this fixed. Thank you for politely pointing out the typo so I can get it fixed it.
Here are the correct Numbers:
BNS:
Dividend Yield:3.78%
EBIT Growth (Year 1/Year 2): 19.15%
Forward P/E: 10.26
BNS:
Dividend Yield:4.64%
EBIT Growth (Year 1/Year 2): 28.50%
Forward P/E: 9.46
10 Profitable, High-Dividend Stocks to Quell Market Fears [View article]
If we had any positions they would be disclosed as required by SA. Please do not make any baseless statements where you lack support.
The EvoFresh Team
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en.wikipedia.org/wiki/...
www.britannica.com/EBc...
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noir.bloomberg.com/app...
Genco Shipping & Trading: Value Investment in a Rebounding Industry [View article]
OpenTable: A Rocket Stock or Dud? [View article]
Generally we make forecasts and assumptions relative to a 12-month rolling period. Unfortunately, we do not divulge every single piece assumption and or the information that led us to them as our model is proprietary in nature. We're sure you can understand this since you have you're own proprietary software for what you offer.
In terms of general financial modeling anytime one increases the Discount Rate (WACC) the fair value estimate will inherently be reduced. We prefer not to use or be skewed by the assumptions of other analysts for our modeling. In our opinion the discount rate is fair given the current equity and debt structure of the firm.
Ultimately, the true beauty of corporate finance, forecasting the fair of a company's stock, and financial modeling is that people from all over the world have access to the same information but come up with different conclusions about the company.
10 Low Leverage, Dividend Stocks With Impressive Top-Line Growth [View article]
You are correct in that the dividend yield is incorrect. We are working to have this fixed and we apologize for the typo.
When looking at the topic of Beta both Yahoo:Finance and Google:Finance list different betas. Having your CFA designation we're sure you understand Beta can be calculated in more than one way and that it will inherently change over time due to changes in volatility.
Finally, you did not reference the correct equation for Financial Leverage. Instead, you incorrectly provided the Debt/Equity ratio. We know it was an honest mistake. The Financial Leverage Ratio is as follows:
=Average Total Assets/Average Total Equity
The link below is to the CFA glossary relative to Financial Leverage:
http://bit.ly/uP2KXZ
We have also seen Financial Leverage calculated in more than one form but this is the way the CFA institute views it. We thought the link would be a good reference for users in general.
Thank you for pointing out the typo and have a great day.
The EvoFresh Team
10 Expensive Dividend Stocks Riding On Bullish Momentum [View article]
The financial markets are constantly changing & to expect these performance numbers to never change isn't realistic. Further, given the fact that the market is swinging well over 100+ points on the Dow 30 on almost any given day only cements the point that performance numbers can and will inherently change quickly by their very nature. Finally, articles are not reviewed and posted in literal real time on SA so there may be some slight information delays. Thank you for understanding.
The EvoFresh Team
10 Cash Rich Large Cap Stocks Trading Far From Their Highs [View article]
Thank you for notifying us of the typo. We are getting it corrected now. Have a nice day.
EvoFresh Team
10 Undervalued Small Cap Stocks With Large Amounts Of Cash [View article]
Great question. There is no exact number but generally anything greater than 10% raises some type of flag for the better or the worse in our view. Food for thought.
EvoFresh Team
6 Cheap, Unloved Real Estate Stocks With Little Debt [View article]
You are correct and thank you for pointing out the issue. We are working to have it fixed.
EvoFresh Team
10 Highly Leveraged Dividend Stocks With Poor Profitability [View article]
Thank you for pointing out the dividend yield discrepancy. We're notifying SA currently on this topic. The Operating Margin was in reference for the full year of 2010. Have a great day!
The EvoFresh Team
10 Overvalued Dividend Stocks With Poor Liquidity [View article]
You bring up a good point in that RGNC is an MLP, which makes it more unique. Still, this is a business plain and simple. Unique tax benefits and distribution criteria to shareholders do not change the fact that the firm has short-term obligations and long-term liabilities that must be handled. What happens if they have some type of accident at a facility? They can't just shrug their shoulders and say "hey this won't affect our liquidity as a firm, our dividend payments, and or impact us adversely because we're an MLP."
Based on our information the Payout Ratio (TTM) for for RGNC is 970.54. Our understanding of the Payout Ratio is as follows:
Payout Ratio - Trailing 12 Months
Payout ratio is calculated by dividing dividends declared for the indicated 12 month period by net income for the same period of time.
Thus what RGNC is currently yielding and what it has generated as a company in the last twelve months relate. As far as we can tell trailing earnings will not cover the yield illustrated. Of course they can take out debt or some other sort of financing to pay the current yield. As with many MLP's the dividend is often variable and contingent on what the firm earns, commodity pricing risk, and other variables.
We are much more comfortable with BPT & SJT relative to MLP's. If this was simply a EPS topic then every MLP by this logic should have an astronomical PE ratio but they don't. Plus, plenty of companies that aren't MLP's play the "tax game" just as well. GE & Google come to mind. Last, to write off standard financial health metrics on any company simply because of a tax classification (MLP's) or unique characteristics would be short sighted.
The EvoFresh Team