Comments for Atristaín.com

Comment on Investing for the long-term by webmaster

Wed, 17 Mar 2010 19:42:42 +0000

Hello Professor,
There are several approaches that should be used for picking a good company to invest in or work for. The one thing this class has taught me is that you need to look below the surface.

I never knew how important it was to understand what cash flow meant to a company. Having cash to pay the bills is an important item for a company. To keep a business operational, a company need to be able to pay employees, buying new systems, buildings, computer…etc, If you look at a company’s book and they have poor cash flow, I would wonder how they are going to meet these expenses. With that being said, let’s hope that they are not heavily in debt by issuing bonds, or borrowing in the credit markets.

Just looking at the cash flow doesn’t tell the whole picture of how a company is preforming. Look at the company’s return on equity and asset. Having high ratio of total return on assets is a good thing as you are looking at the net income to total assets. Did the company earn enough money for the year to support the assets they have? Also, stockholders expect a return on their investment.

My company just hired a new CFO. This is the third CFO within 3 years. Now I’m very concerned as to what our books are saying, and having the basic understanding how to look at the information, a long with the internal knowledge of working the company. I’ll be able to read between the lines must better.

Comment on Investing for the long-term by Sylvia Gavina

Wed, 17 Mar 2010 18:29:53 +0000

The best approach in picking good stocks to invest is to review the company’s cash flow, historical stock performance,P/E and ROE. This approach would help to determine the company’s efficency and the company’s growing

Comment on Investing for the long-term by Sandy Jacob

Thu, 11 Mar 2010 16:44:40 +0000

The best approach to picking good stocks to invest in is to review the annual reports, which provide information on recent activity, such as acquisitions, sell-offs, etc. Review historical and current financial data of the company to include a focus on cash-flow. Review the company’s future goals. For example, new products scheduled to be rolled out to the public, such as the I-phone with Apple. And, review EPS, book value, and dividends the company has paid out. This is the approach I would use to pick good stocks to invest in.

Comment on Investing for the long-term by Wren Williams

Thu, 11 Mar 2010 15:20:10 +0000

When analyzing companies for long term investing, one must consider several pieces of information: the companies financial status over a period of time (income statement, balance sheet, cash flow, historical stock performance i.e. EPS, Beta, P/E, dividend payout), a companies business model and the econmic and market demand, as well as the company’s leadership. Keep in mind diversification such as commodies that hedge against recession regardless of what goes on within the economy. Look at strong fortune 500 companies that have historically done well in the past. Each of these should be considered prior to long term investing.

Comment on 3a Convención de Jóvenes Líderes en Madrid, que aprendimos…? by online-maris

Sun, 04 Oct 2009 22:46:11 +0000

lo que yo queria, gracias

Comment on Yield Curve… by rjatrix

Fri, 13 Feb 2009 15:42:50 +0000

I have been following a couple of Yield Curves, i.e. Yield Curve for U.S. Treasury debt certificates and LIBOR curve, and have been running numbers on a probit model. This linked to past events–the predictability of recessions in the economy–have been depicting since late 2006 a jump on the probability of recession–an inverted yield curve. Well, now that we are deep in the period of recession that this analysis was predicting, I have learned to pay more close attention to it. A lot of literature about inverted yield curves depicts them as an anomaly that happens rarely.
In recent years the investment community was thinking about an impending inflationary period and thus did not see, in general, that the long and short rates differences to compensate for inflation as factors related to a downturn. They saw short rates becoming normal, and long rates being held steady because money was flowing into the U.S. following our economic strength. Today, we find ourselves moving towards a severe recession for this year (2009) and a lot of voices in the same investment community thinks there will be a slow recovery in the following year. I just hope that policymakers are able and do short-circuit the down spiral affecting the economy.

The point: the ripple effects of an inverted yield curve remain, but using the inversion as an economic indicator for the US is less reliable than it was in the past

Comment on Yield Curve… by Maggie Garbacz

Wed, 28 Jan 2009 18:44:30 +0000

I have a question about one of the suggest problems for Chapter 2. In part d. to get the correct answer the calculator must be in “Begin Mode”. What make part d. different from part c.? Is it just because the problem states, “…3 payments began on January 1, 2006″, is the word began the key?

Comment on Yield Curve… by Maggie Garbacz

Wed, 28 Jan 2009 18:34:32 +0000

The overall pattern of the yeild curve is “Normal”. It is upward sloping. So the Interest rates are projected to go up.

Comment on Yield Curve… by RJAC

Wed, 21 Jan 2009 20:37:51 +0000

For the Project, Phase 2: it should read “competition” and not “competition of assets” (although it was intented to mean competition of companies or assets in a portoflio).
For this project, one year of historial stock prices would be fine.

Comment on Credit crisis… by Mochael C

Wed, 21 Jan 2009 20:04:27 +0000

Where do you start?