E.g. in the depths of a depression earnings fall much
further than stock prices because investors understand the depression to be temporary.
Look
no farther than the stock price, which rocketed toward $ 400 in 2017, giving Tesla a market capitalization that at $ 50 billion exceeded Ford's, Fiat Chrysler Automobiles» and challenged GM's.
Not exact matches
Earnings have been
far better
than people thought, yet
stock prices haven't necessarily reacted to them.
That means that Snap
stock will be insanely expensive: At a $ 24 billion valuation, Snap shares will have a
price - to - sales ratio of 59, making it
far richer
than Facebook
stock and other social media companies — and likely the most expensive tech IPO ever.
But for investors who study the forces that govern
stock prices long term, the outlook was no more upbeat after the election
than it was before — and it was
far from terrific.
In contrast, when a deal is structured around
stock, the assets on the books must be amortized at their value to the seller, which is likely to be
far less
than the total sale
price.
In the long run, broader economic cycles and the push - and - pull decisions of millions of businesses and shareholders do
far more to move
stock prices than any one leader.
These risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain growth in revenues for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may increase the amount of discount required on Gilead's products; an increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger
than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market share and
price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering
prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all, for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant
further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its share repurchase program due to changes in its
stock price, corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
It was, in fact, the ultimate value
stock because the discounted present value of the actual, real future cash earnings was
far greater
than the
stock price at the time.
As a result, past returns have been somewhat higher
than 10 % annually, but that also means that
stocks are now
priced to deliver
far less
than 10 % annually in the future.
Of course, in recent years,
stock prices have grown much faster
than earnings and dividends, driving the P / E
far above its historical average and the dividend yield (D / P)
far below its historical average.
In other words, as Fannie Mae and Freddie Mac's
stock prices increase — and they have so
far more
than doubled since the election on the expectation that the incoming Trump administration will be more lenient toward the financial sector
than Obama — Trump's portfolio benefits.
For example, if the
stock is callable at $ 100 and the shares are trading very close to that (say, at $ 99), the likelihood that the
stock will be called soon is much higher
than if the
stock were trading at $ 89 (
further away from the strike
price).
precious metals
stocks — regardless of whether they predominantly mine gold or silver — have shown
far stronger correlation with silver
prices than with gold
prices over the past two years (see the chart at the end of this post); 2.
Further, the competitive position of these companies should enable them to capture much of the economics from U.S. corporate tax reform, yet the
stocks both trade for lower
prices than before the passage of the bill.
The Series A Preferred shall also be convertible into any future series of Preferred
Stock (the «Future Preferred») under either of the following circumstances: (a) if such conversion is approved by the Board or (b) if such conversion is in connection with a future Preferred
Stock equity financing in which the Company's fully diluted pre-money valuation is greater
than the Company's fully diluted post-money valuation immediately following the Series A Financing contemplated by this term sheet (a «Future Financing»), in either case, on a one - for - one basis (subject to anti-dilution adjustment) at the option of the holder; provided however, if such conversion is in connection with a Future Financing, that the holder may convert into shares of Future Preferred only in the event that all of such shares of Future Preferred received by the holder upon conversion are sold to an Approved Investor (as defined below) no later
than 90 days following the first closing of the Future Financing at a
price per share no lower
than the
price per share at which the Company sells shares of such Future Preferred in the Future Financing and, provided
further, that such Approved Investor is not an affiliate, family member, or related party of the holder.
Oil and gas equities have been underperforming crude oil
prices since the middle of 2017, but the outlook for energy
stocks deteriorated
further in the past two weeks, as major oil benchmarks have declined more
than 10 per cent.
This is the best standard stereo system I've heard in a car at this
price point, and I will go so
far as to say that it's better
than the
stock system in my Audi TT.
I'd
far rather look through many hundreds of
stock photos and find one that fits perfectly with a book's message
than to attempt to kludge together a cover from a few images I could get an exclusive on at some high
price or to attempt to take one myself, with all the complications that can involve, particularly that of finding models.
We've witnessed some crazy swings in
stock prices so
far this year, with the Dow losing 500 or more points in a single trading session five times, plummeting by more
than 1,000 points two of those times.
Since assets get marked to market and those show appreciation for their public holding (but not private ones like See's or Furniture Mart), I now understand why Buffett claims their intrinsic value is probably
far higher
than BRK's
stock price may indicate.
Knowing how
stocks are
priced historically relative to some metric like earnings or cash flows is
far more instructive
than knowing whether
stocks are at an all time high or not (we've addressed the predictive utility of
stock valuations in several posts, including here and here).
Because small value
stocks have performed particularly well in the past, the list was
further narrowed down to firms with market capitalizations (shares times
price per share) of less
than $ 1 billion.
Since
stock prices have been hammered, your holdings of
stocks will proably make up a
far smaller part of your portfolio
than before.
At the top of the bull market,
stocks were
priced at three times fair value and all investors came to believe that they had accumulated
far more wealth
than they had in fact accumulated.
You want to go with a
far higher
stock allocation when
stocks are
priced reasonably
than you do when they are
priced insanely high (as they have been for most of the time - period from 1996 forward).
I think the risk of mediocre returns is
far more dangerous
than the short term risk of
stock price fluctuation.
Asset managers, at the end of the day, have
far less sway on what happens to
prices of
stocks and investor wealth
than do asset owners and their consultants.
They matter
far more
than short - term
stock -
price trends.
Upon
further inspection of the
stocks in my database, I determined that high - quality companies with
Price - to - NCAV Ratios less
than 3.00 were also bargains.
As I mentioned before,
stocks usually don't trace out a sudden V - shaped recovery — sure, you'll have realized a loss (to possibly avoid
further losses), but you'll probably have another opportunity to buy into the
stock (at a
price far better
than your original purchase)-- dependent, of course, on seeing improving technicals & fundamentals.
Gyrating
stock values, slumping oil
prices, turmoil in foreign currency markets, predictions of slow growth or even deflation abroad... Suddenly, the outlook for the global economy and financial markets looks
far different — and much dicier —
than just a few months ago.
This causes the thinly traded
stock's
price to trade up, forcing the short - seller to buy back
stock at
far higher
prices than he had hoped, which sends the
price of the
stock higher still.
So, if you can just show, for example, that the odds of a
stock market crash are
far higher in years when the P - E ratio is much higher
than average (or for housing crashes the buy - rent, or
price - household income ratio), or that the expected risk - adjusted long run return is much lower
than average, or other «anomalies» (anomalous to the EMH) like this, then you can show that the EMH is substantially
far from the truth.
October 2002 by John Bajkowski If a
stock's
price rises faster
than its dividend, the dividend yield will fall, indicating the
price may have been bid up too
far.
The belief here is that
stocks are
far more dangerous at times when they are insanely overpriced
than they are at times when they are low -
priced or fairly
priced.
And, at times when
stock risk is high, it makes more sense to invest in asset classes that offer guaranteed real returns (TIPS and IBonds) because the money invested in these asset classes can earn
far higher returns in
stocks than they could in bonds once
stocks are again well -
priced.
One of the big edges provided by VII is that the investor avoids the big portfolio losses that cause
stock sales and yet the effect of selling
stocks at low
prices (which obviously hurts the Passive Indexer
far more
than it hurts the VII investor) is assumed out of most statistical analyses.
Further,
stocks that are at new
price highs tend to do better
than those making new
price lows.
The
pricing and trading of bonds and fixed income securities is
far more convoluted
than for common
stocks or equities.
Further, the specific risks associated with selling cash - secured puts include the risk that the underlying
stock could be purchased at the exercise
price when the current market value is less
than the exercise
price the put seller will receive.
That is, those who change their
stock allocations in response to big
price shifts with the aim of keeping their risk profiles roughly constant obtain
far higher returns while taking on greatly reduced risks
than do those following widely...
A quick way to tell if a
stock is worthy of
further research is to determine if it is trading for less
than its historical average
price - to - earnings ratio.
For example, if the
stock is callable at $ 100 and the shares are trading very close to that (say, at $ 99), the likelihood that the
stock will be called soon is much higher
than if the
stock were trading at $ 89 (
further away from the strike
price).
Stock prices will always be
far more volatile
than cash - equivalent holdings.
This represents an inherent risk — or benefit — in commodities trading in that
price swings in either direction can be
far more dramatic
than is usually the case with
stocks.
30 million units with a great tie ratio is still a hugely profitable console - and while the markets may abhor the notion of a company's market share declining in this way, Nintendo is
far less in thrall to
stock price than most companies in this industry.
The Bitcoin Investment Trust is currently traded «over the counter» in less formal exchanges
than those used for typical
stocks and at
far higher
prices than the bitcoin it holds.
A
further factor noted by redditors is that, since Apple relies on Yahoo! Finance data, it's «
Stocks» apps for both iOS and OS X can also be set to display the bitcoin
price, though historical data is not extensive and an error arises with requests older
than one week.