I've used this framework for many years since I first learned it from yielder (Mike). It was probably one of the main reasons I started visiting this site. If I hunted around through some old computer backups I might still have the underlying spreadsheets that he provided. Unfortunately many of yielder's links are long dead. But the technique and other toolsets live on.yielder wrote: ↑26 Feb 2005 08:54In follow up to my comments on ROC, this might be helpful. I made a lot of statements about ROC. They were based on a spreadsheet-based quantitative analysis that I apply to all stocks that I own/want to own. I also do a qualitative analysis if the stock passes the quant analysis.A good recent example is ROC.
This spreadsheet is a direct steal from the concepts advanced by the NAIC and the CSA. This is the framework within which I buy stocks. Some less than obvious, perhaps, aspects of the spreadsheet. It needs at least five years worth of data to crunch so I don't look at new issues and rarely at stocks with less than five years of history unless the prospectus has pro-forma data that I feel comfortable using. The formulas used include a CAR add-in which doesn't like negative growth rates so stocks with that characteristic usually get excluded.
This spreadsheet or the NAIC/CSA commercial tools impose give me a framework that forces me to be disciplined and consistent with my cherry-picking.
Mike
NAIC has become BetterInvesting - Non-profit Investment Education. BetterInvesting subsidiary ICLUBcentral's Toolkit 6 is the leading product for advanced fundamental stock study. For those interested, on the linked page you can download a free demo of the software. I've been using Toolkit 6 and ICLUBcentral's data sources for a many years, the annual cost is well worth the value that I receive.
So why dredge up this fascinating history? I thought it might provide some background on a framework that can be used to analyze stocks and have some discussion about fundamental analysis of a number of stocks that are being discussed on FWF.
Going forward it is my intention to post a number of Stock Studies that I've completed with the rationale for my estimate choices as a basis for further discussion for those who might be interested in this framework.
This specific topic could be used to discuss the mechanics, flaws, etc. of the framework.