Volcom Research Report 3

Strong 45 efficiency out of 5 stars weak measures the

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Unformatted text preview: h of a company's return on invested capital. The company has generated more income per dollar of capital than 80% of the companies we review. strong 3.0 Price volatility out of 5 stars weak Measures the volatility of the company's stock price historically. The stock is less volatile than 50% of the stocks we monitor. strong 4.5 Solvency out of 5 stars weak Measures the solvency of the company based on several ratios. The company is more solvent than 80% of the companies we analyze. strong 0.5 Income out of 5 stars weak Measures dividend yield and payouts to shareholders. This company pays no dividends. strong THESTREET.COM RATINGS RESEARCH METHODOLOGY TheStreet.com Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet.com Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet.com Ratings, Inc. C...
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This note was uploaded on 10/25/2011 for the course BUS 214 taught by Professor Waker during the Fall '08 term at Cal Poly.

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