Vulture investors like Mr. Smith often buy up the debt
of weak companies for pennies on the dollar, hoping to turn a profit when the companies go through bankruptcy or restructure their businesses.
The Piotroski F - Score Stock Screen is a value investing strategy to identify stocks of companies with good fundamentals and eliminate stocks
of weak companies.
The Piotroski F - Score Test is a value investment analysis tool to identify stocks of companies with good fundamentals and eliminate stocks
of weak companies.
The Piotroski F - Score Stock Screen is a value investing strategy to identify stocks of companies with good fundamentals and eliminate stocks
of weak companies.
Under IFRS, temporary resuscitation
of weak companies through timely acquisitions has become like child's play.
Theoretically, then there will be greater price dispersion between the stocks
of weaker companies and those that are fundamentally stronger when interest rates trend higher.
The devil in the details: how do you prevent normal business activity (eg: buying Christmas inventory) from taking the value
of a weak company below the value of unfunded pension obligations?
«I tend to avoid the shares
of weaker companies, even if their shares are selling at depressed prices.
It is rarely a good idea to buy the stock
of a weak company in a competitive industry, regardless of the valuation.
Not exact matches
The
company attributed the performance to its international business, where it saw higher expenses, lower profit margins and
weaker gains from sales
of assets.
Combine that with
weak commodity prices, flat global trade and the governance risk associated with
companies in many
of these countries, and safety - minded investors are perhaps best served by limiting their exposure to the grouping at this time.
This prompted the
company to create a code
of conduct for all its suppliers; wherever they were in the world, they would rise above
weak labor laws.
Here are three off the top
of my head: Record levels
of household debt threaten future spending, too many
of our
companies need a
weaker currency to be competitive, and international energy
companies are giving up on Canada as a place to invest.
Reports
of weak phone component orders and the fading benefits
of tax reform cast a shadow over the
company's future.
The highlights
of 2011 are almost too painful to mention: the PlayBook, RIM's first tablet, was a flop; its latest line
of BlackBerry smartphones was delayed;
weak sales forced the
company to issue a profit warning in the spring; its network was hit by a massive service outage in the fall; and it suffered the largest wave
of layoffs in its history.
S&P said in March a rupiah exchange rate
of 15,000 a dollar is «the psychological level» at which
companies with
weak balance - sheets could struggle with repayments and those with good cashflow might start to proactively restructure their debt.
Potential U.S. sanctions on sales
of light crude to Venezuela's oil
company PDVSA would hamper its already
weak refining network while leaving at least one tanker in limbo, according to a source from the state - run firm and Thomson Reuters data.
Shares
of Priceline sunk 6 percent after the
company reported
weak guidance for its third quarter.
The
weak results will stoke investor concerns over the
company's stalling growth and the effectiveness
of Chief Executive Jack Dorsey's turnaround strategy.
«The investigations, along with current discussions among shareholders, possible changes in the board
of directors and management, will be a distraction,» Moody's said in a statement March 6, also highlighting the
company's «
weak credit metrics.»
«Because we are in the hospitality and recreation business, which is largely dependent on discretionary spending,» the
company's latest financial report explains, «we believe that the
weak housing market, increases in unemployment, decreases in air flights to Las Vegas, decreases in the value
of stock and other investments, and the general tightening
of spending on business travel have all affected visitations to Las Vegas and the spending budget
of our customers.»
With fourth - quarter sales
of condensed and ready - to - serve soups down 7 %, prominent Wall Street firm Janney Montgomery Scott recently downgraded its rating on the
company's stock, citing a
weak packaged - soup market.
The outlook for this round
of earnings isn't sunny, and many are expecting it to be the
weakest season for big - cap
companies in six years.
Moorhead's post prompted plenty
of well - deserved bashing
of Intel's mobile failings and a recounting
of how the once dominant
company of the «Wintel» era had been disrupted by smartphones running
weaker, slower but cheaper and lower - powered ARM - based chips.
The initial sign
of trouble came during the
company's first - quarter earnings call when management issued
weak guidance, cautioning investors
of difficulties ahead.
Robert Stone, an analyst with Cowen and
Company, thinks that board sales will decline by 5 % in 2015 because
of a
weak U.S. education - related spending.
The four conglomerates originated in different sectors, but their underlying business model is the same: cultivate powerful allies in the Communist Party; use those relationships to win regulatory and property concessions; gather investment from friends, family and other proxies
of party elites into a murky, unregulated private holding
company; borrow heavily from state - owed banks and other sources to finance prodigious growth plans; invest as aggressively as possible in stock and property overseas as a hedge against slower growth in China and the risk
of a
weaker Chinese currency.
Capital outflows lead to a
weaker currency, which concerns the hordes
of Chinese
companies that borrowed debt in foreign currencies over the past few years and now have to pay it back with a
weaker yuan.
As stronger railroads bought up
weaker companies and divided up markets with the remaining competitors, the dangers
of monopoly became more and more apparent.
Firms directly tied to the energy sector expected further declines in their sales volumes, and
companies that sell to energy - related customers suffer along with them as they adjust to an environment
of weak demand.
«We saw ourselves — the
company, the management, the leadership, all the way to the rank and file — as this powerful global media
company,» Flanders says, «and, in fact, we were a powerfully recognized brand, but our businesses, each one
of them, was
weaker than the next.»
Facebook has a special lab stocked with low - end Android phones, old flip phones and
weak networking to help the
company figure out what computing conditions are like in parts
of the world with limited internet connection.
In all
of the above cases the entrepreneur who is susceptible to the confirmation bias will look for information and analyze it in a way that will yield: 1) fewer competitors rather than more, because it increases the viability
of the start - up, 2) underestimation
of the capabilities
of the competition because stronger competitors will make life harder for the entrepreneur, 3) view
of the
company's product as fully addressing the needs
of the customer because otherwise the start - up is at a
weaker position in the marketplace, and 4) need for less resources rather than more because it generally makes raising the money easier.
The colorful rubber shoemaker Crocs is the latest in a series
of companies to say that their
weak earnings results were, at least in part, due to the weather.
A significant share
of the corporate debt in stressed economies is now owed by
companies with
weak debt servicing capacity and this could negatively affect bank balance sheets and cut into profits, it added.
Upon analysis
of revenue streams, the
company found the
weakest revenue was coming from its Las Vegas business.
The link between Montsanto and Sumitomo is also
weak — Montsanto does not manufacture or sell larvicides, and does not own any part
of Sumitomo, although the
companies do partner in the area
of weed control in Latin America.
Barnes & Noble shares closed down 5.4 percent on the New York Stock Exchange after the
company also reported a much -
weaker - than - expected quarterly profit, due to lower sales
of Nook devices.
Viacom, meanwhile, looks even
weaker: Two
of its long - established channels, MTV and Nickolodeon, have been losing viewers rapidly, and analysts say the
company is particularly vulnerable going into negotiations with cable providers, where it will bargain for the right to be included in their bundles.
The
company's results have been pressured by
weak Russian and Ukrainian beer demand, where an ongoing geopolitical crisis has pressured sales for Carlsberg and some
of its rivals.
The stimulus from a
weaker currency is over; if
companies didn't respond to a 20 % drop over two years, they likely aren't going to respond to a decline
of a few more percentage points.
At the same time, the
company warned that revenue could be
weak over the next few quarters — in part because Twitter is winding down a number
of advertising products that weren't performing.
Comparable sales fell 17 % at Sears and 13 % at Kmart, a striking result given that they exclude the dozens
of weak stores the
company has culled in the last year.
John Chambers believes
companies will stumble not because
of weak talent, but because they lack digital business skills.
Current employees at small
companies won't get much in the way
of raises because high unemployment and
weak hiring plans will keep wages from rising.
The department store
company, which has reported sales declines in its last 11 quarters despite closing dozens
of weak stores, said on Thursday, that comparable sales rose 1 % in November and December, a modest increase to be sure, but one that puts Macy's on track to report its first quarter
of growth in three years.
Alcoa Inc.'s third - quarter results, scheduled to be revealed after the market closes Thursday, will mark the unofficial launch
of what is currently projected to be the
weakest earnings reporting season for S&P 500
companies in six years.
Virgin America said it recorded a loss
of $ 22.4 million in the first quarter
of 2014, though the
company said that period is seasonally the
weakest.
Companies ripe for takeovers often have some
of the following traits: • a small capitalization; • a market price less than book value; • a «
weak» management team; • ownership
of undervalued assets or important patents.
Even though the
company has a strong debt - to - equity ratio, the quick ratio
of 0.17 is very
weak and demonstrates a lack
of ability to pay short - term obligations.