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Gar Wing Yee

 
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  • Hewlett-Packard: After The Autonomy Debacle, Is There Value Left In The Stock? [View article]
    HPQ seems to have finally reached its bottom after 3 (!) years sliding south. According to my GAPE screening the stock is now one of the most attractive within SPX. If the management stops doing silly stuffs and just focuses on their various business segments - which actually bring in decent cash flow - the stock should at least perform decently within 6-12 months.
    Jan 10 08:56 AM | 1 Like Like |Link to Comment
  • Hewlett-Packard: After The Autonomy Debacle, Is There Value Left In The Stock? [View article]
    HPQ seems to have reached bottom after sliding for 3 (!) years. It is ranked as one of the cheapest stocks in SPX according to my GAPE ratio. If the management just stops doing silly stuffs and focuses on business, the stock should look very promising.
    Jan 10 08:41 AM | 1 Like Like |Link to Comment
  • GAPE - A New Equity Valuation Ratio To Beat Hedge Funds: Part I [View article]
    Hi gianinno, sorry I didn't make myself clear. It's the latter - portfolio was changed every 6 months after re-examining all GAPE scores.
    Jan 10 09:53 AM | Likes Like |Link to Comment
  • Is Western Union A Value Trap? [View article]
    Agree that at current valuation it offers some value.
    Jan 10 09:26 AM | Likes Like |Link to Comment
  • First Solar Versus The Solar Industry [View article]
    FSLR is actually the BEST performer within SPX in 2H2012. Congrats Trent!

    Notwithstanding its run-up it still appeared as one of the most attractive stocks when I ran my GAPE screen last week. I believe it will continue to outperform in the coming 6-12 months.
    Jan 10 09:11 AM | Likes Like |Link to Comment
  • GAPE - A New Equity Valuation Ratio To Beat Hedge Funds: Part I [View article]
    Hi David, while I'm unfortunately not in the position to reveal the exact formula, the underlying concept is pretty much what I have laid out. In essence it leverages on the core concepts that define the BS model. Here are some more details on its modification: spot ->stock price; strike->growth rate; volatility->0.
    Jan 10 05:24 AM | Likes Like |Link to Comment
  • GAPE - A New Equity Valuation Ratio To Beat Hedge Funds: Part I [View article]
    Hi, in short it's an improvement to the PEG ratio which the industry uses to price 'growth'. Essentially my postulation is that a stock with growth of 10% selling at 10x P/E is, from valuation point of view, NOT the same as another with growth of 20% selling at 20x P/E.

    When I first derived this in Sep'10 it was just meant for academic discussion, until someone suggested me to backtest it to check its practicality. Turns out that, to my surprise, it is a wildly successful tool to pick winners.

    Thought that perhaps I can share these winners for the benefit of the community through discussions on their fundamentals.
    Jan 10 02:48 AM | Likes Like |Link to Comment
  • GAPE - A New Equity Valuation Ratio To Beat Hedge Funds: Part I [View article]
    Hi thanks much for pointing out. It's a coincidence that both of us use the same acronym. However they are not the same. If you go through the article, chances are that you will still scratch your head trying to understand the underlying rationale - why plus one, why raise to power N, and which N to use?

    The very reason why PEG remains questioned is that it lacks a proper mathematical framework to justify its form, and I don't see how David has addressed that in the article. On the contrary I derive my GAPE by modifying the BS model. Why BS model? Because just as there should be a deterministic link between an option and share (or any underlying), there should also exist a link between 'company' and 'stock' under the assumption of no-arbitrage. The end product is a formula which is much more complicated than David's suggestion.
    Jan 10 02:33 AM | Likes Like |Link to Comment
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