9780131435278

Pick stocks based on the truth - not the 'official' company hype! & lt;br/ & gt; & bull; 'Core earnings': how to strip away the misleading data that causes traditional stock analysis to fail. & lt;br/ & gt; & bull; Start-to-finish analysis techniques for today's markets - including new ways to reduce your risks. & lt;br/ & gt; & bull; By the author of Getting Started in Options (ISBN 0471444936; 180, 000 copies sold).

Preface

xv

PART I THE TECHNIQUES

1 Core Earnings Calculations: A Revised Approach

3

(30)

Applying the Core Earnings Idea

6

(1)

The Emergence of the Core Earnings Idea

7

(5)

A Premise for Stock Selection: Accuracy in the Financials

12

(5)

Examples of Core Earnings Adjustments

17

(4)

Long-Term Direction in Corporate Valuation

21

(4)

Accounting Problems and Stock Selection

25

(2)

Fundamental Versus Technical Approaches

27

(4)

Endnotes

31

(2)

2 Trend Discovery: Finding the Elements of Emerging Change

33

(30)

The Trends that Affect Long-Term Value

34

(7)

Balancing PE and Market Perceptions: Looking to the Future

41

(3)

Distinctions: Investment Value and Current Market Value

44

(12)

Applying PE Tests

56

(3)

A Four-Part Approach to Analysis

59

(3)

Endnotes

62

(1)

3 Trend Interpretation: Deciding What It Means

63

(28)

Sales Trends: Identifying Core Revenue

64

(7)

Sales by Operating Unit or Product

71

(4)

Sales Interpretation with Changed Segment Mix

75

(2)

Net Earnings Trends

77

(4)

Capitalization Trends

81

(3)

PE Ratio and Core PE Ratio

84

(7)

4 Confirmation: A Powerful Analytical Technique

91

(28)

The Dow Theory: Trends and Confirmation

92

(6)

Confirmation as a Means for Identifying Primary Trends

98

(7)

Confirmation to Test the Reliability of the Numbers

105

(4)

Translating Confirming Indicators to Stock Selection Criteria

109

(3)

Confirmation Applied to Market Price Trends

112

(7)

5 Fundamental Volatility

119

(26)

Expanding the Definition of Risk

120

(3)

Redefining Market Risk

123

(5)

Guidelines for Treatment of Exceptions

128

(2)

Fundamentals as the Basis of Market Risk

130

(6)

Positive and Negative Aspects of Fundamental Volatility

136

(3)

Using Volatility to Pick Stocks

139

(2)

Endnotes

141

(4)

PART II THE TOOLS

6 Investigation: Verifying the Financials

145

(24)

The Question of Trust: Motives at the Corporate Level

146

(4)

Healthy Suspicions: How Much Trust Can You Place in the Report?

150

(10)

The Revealing Nature of Investigation

160

(3)

Trends as the Test of Accuracy: Investigative Techniques

163

(4)

Endnotes

167

(2)

7 The Core Earnings Workbook: Finding the Numbers

169

(22)

Conclusion

189

(2)

8 The Trend: Workbook: Breaking the Code

191

(32)

9 Looking Ahead: The Core Roadmap

223

(32)

The Concept of Corporate Governance

224

(1)

Symptoms of Governance Quality: Investor Relations

225

(3)

New Standards for Corporate Reporting

228

(3)

Coordinating Governance with Core Earnings-Based Reporting

231

(4)

Risk Tolerance Defined in Terms of Volatility

235

(5)

Transferring Risk Management into Action

240

(7)

Applying the Scientific Method

247

(3)

Working for Reform: A Concluding Action List

250

(2)

Endnotes

252

(3)

Index

255

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Stock Profits : Getting to the Core--New Fundamentals for a New Age

Stock Profits : Getting to the Core--New Fundamentals for a New Age

0131435272

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