On Recession, Cardiac Stents, Garbage Collection and Ballistic Missiles
Click on images for full-size and details. By this time you must be pretty disillusioned with analysts' estimates and forecasts as well as what Companies tell us they are worth i.e. their book value.Using ValuEngine's Model and Viscovery's Self-Organizing Map, we take a look at what kind of stocks appear in our stock pick list if we ignore analysts' estimates, Price/Book ratios, Price/Earnings and Price/Sales ratios. We also ignore the forecasts of ValuEngine's Forecast Model that does simulation treating stock prices as mean-reverting stochastic processes, since at this stage we believe that certain Model variables such as Average Volume [Liquidity], Volatility, and Size should have greater weighting in the Model parameters. In the top image, the statistics of Cluster 3 [S3] are the most favorable when measured in terms of standard deviation from the screened population. The screen used is somewhat similar to the "stocks for a recession screen" of the Ma...