Preferred Stock: has a higher claim on assets and
earnings than common stock.
Not exact matches
U.S.
common stocks currently are still more expensive, based on price -
earnings ratio comparisons,
than foreign
common stocks.
This discussion also does not consider any specific facts or circumstances that may be relevant to holders subject to special rules under the U.S. federal income tax laws, including, without limitation, certain former citizens or long - term residents of the United States, partnerships or other pass - through entities, real estate investment trusts, regulated investment companies, «controlled foreign corporations,» «passive foreign investment companies,» corporations that accumulate
earnings to avoid U.S. federal income tax, banks, financial institutions, investment funds, insurance companies, brokers, dealers or traders in securities, commodities or currencies, tax - exempt organizations, tax - qualified retirement plans, persons subject to the alternative minimum tax, persons that own, or have owned, actually or constructively, more
than 5 % of our
common stock and persons holding our
common stock as part of a hedging or conversion transaction or straddle, or a constructive sale, or other risk reduction strategy.
It's
common to object to the dividend yield as a measure of valuation, given that companies have devoted more of their
earnings to
stock repurchases
than dividend payments in recent years.
Issues defined as «growth
stocks» have a number of
common traits, but the most important is that their
earnings are expected to grow at a faster pace
than the broader market over a period of time.
«
Common stocks of enterprises with only slight possibilities of increasing profits ordinarily sell at a rather low P / E ratio (less than 15 times their current earnings); and the common stocks of companies with good prospects of increasing the earnings usually sell at a high P / E ratio (over 15 times their current earnings).&
Common stocks of enterprises with only slight possibilities of increasing profits ordinarily sell at a rather low P / E ratio (less
than 15 times their current
earnings); and the
common stocks of companies with good prospects of increasing the earnings usually sell at a high P / E ratio (over 15 times their current earnings).&
common stocks of companies with good prospects of increasing the
earnings usually sell at a high P / E ratio (over 15 times their current
earnings).»
... if a
common stock can be bought at no more
than two - thirds of the working - capital alone — disregarding all other assets — and if the
earnings record and prospects are reasonably satisfactory, there is strong reason to believe that the investor is getting substantially more
than his money's worth.
Interest is, of course, a cash cost, while capitalization rates for publicly - traded
common stocks have nothing to do with most companies, since they do the bulk of their equity financing by retaining
earnings rather
than by selling new issues of
common stock to the public.
At July 31, 2002,
common stock investments in NAV driven (rather
than earnings driven) companies accounted for 54 % of the Fund's
common stock portfolio.
For TAVF, our
common stock portfolio is invested in the issues of companies which enjoy great financial strength, and where the price of the
common stock is much closer to the amount of retained
earnings than is the case for general market
common stocks.
Net - Current - Asset Value We feel on more solid ground in discussing these cases in which the market price or the computed value based on
earnings and dividends is less
than the net current assets applicable to the
common stock.
Common characteristics associated with
stocks selling at less
than 66 % of net current asset value are low price /
earnings ratios, low price / sales ratios and low prices in relation to «normal»
earnings; i.e., what the company would earn if it earned the average return on equity for a given industry or the average neti ncome margin on sales for such industry.
At any time, and for most issues, G&D have correctly observed that for the stand - alone going concern, the market price of its
common stock is likely to be influenced much more by current
earnings than by current book value.
If Toyoda used «look through» accounting where, besides dividends, the Toyoda income account also included Toyoda's equity in the undistributed
earnings attributable to the
common stocks of portfolio companies, then the PE ratio would be materially more modest
than 50 times
earnings.
ii.The vast majority of equity financing takes place via having the company retain
earnings, rather
than having the company market new issues of
common stock.
«As for
common stocks, they should trade at an
earnings or FCF yield greater
than that of the highest after - tax yield on debts and other instruments.»