In 1990, Microsoft was a “safe” company. Today it is very risky: From 1985 to 1990, its revenues had increased by 851%. However, since 2013 they have only increased by 43%. In 1990, its debts were 17% of its revenues, but today debts are 49% greater than revenues. In 1990, its Price to Sales [...]
In 1990, McDonald’s was a “safe” company. Today it is very risky: From 1985 to 1990, its revenues had increased by 80%. However, since 2013 they have decreased by -24%! In 1990, its debts were about equal to its revenues, but today debts are 92% greater than revenues. In 1990, its Price to Sales [...]
The following two charts establish a positive correlation between EPS’s proprietary risk analysis of companies in the S&P 500 and its future performance over the following 31 years. These studies sought to identify the degree of reliability of EPS’s risk measurements at predicting future price movements of the S&P 500 index. Most importantly, they [...]
Over the last year, many large stocks LOST 35% or more. These losses were avoidable. EPS’s proprietary “Company Risk Indicator” (CRI) provided a clear warning of the potential losses from these stocks.
For over 100 years, capitalists bought companies to earn income from their operations, rather than from reselling them at a higher price regardless of any lack of income. Buying a company for the income it produces is very different from buying a company that has little or no real net income, hoping that someday [...]
A few times a week, we make comments about big companies in the news. Our goal is to share with you some useful perspectives on identifying and analyzing risk; i.e. the work of EPS. Www.barchart.com is a free site which is very useful in identifying stocks which have moved significantly, both upward or downward. [...]