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Getting started with Model Price is actually quite simple. Our goal is to demystify finance in a way to make investing easier than it’s currently taught or discussed publicly, say in such forms as television.
When I blog, I have and will blog on various subjects. Various subjects such as stocks, news items, government policy, tutorials and television shows I will be appearing on. To me these blogs are relatively simple and by accentuating one or more of our “Key Concepts” will go a long way in explaining to you what is going on with a stock or the financial markets. Depending on which blog the first time reader sees, there can be a big variance on the knowledge level required on the part of the reader. In recognizing this and feedback from readers have suggested that each blog be assigned a “Level”, so readers can distinguish the complexity of each blog.
This can serve multiple objectives.
1. By looking at the “Level” before the reader starts to read the blog helps to distinguish in the readers mind what to expect before the reader invests his/her time in reading the blog.
2. Once we categorize each “Level”, the reader will be able to click on all the “Level 1” blogs, for example, and read them first, before going on to “Level 2”. As their general understanding increases, which shouldn’t take much time, the more the reader can do their own analysis and tell others.
For classification purposes, here are the various levels and their definitions.
Level 1 – Any blog that is personal in nature, appearances on TV or a communication of some kind.
Level 2 – Blogs making reference to Model Price, or our Economic Book Value (EBV) or both.
Level 3 – Blogs making reference to Theoretical Earnings (TE), Convexity and Solvency.
Level 4 – Blogs combining Theoretical Earnings (TE), Convexity, and Solvency.
- Model Price Application and Model Price Guy
I have been registered in the securities industry for over 25 years and interested in financial markets since I can remember. One constant that has occurred each and every year is the amount of information flow … continue
- Model Price Guy – “Your Too Technical For Me!”
A glass of wine (OK, maybe multiple) was required to loosen the lips of a friend and a reader of this blog. “I have read your blog and it’s too technical for me.” … continue
- Why do stocks go up and down?
As a teenager I was mystified how this happened. The question of “why” never left my mind when looking at the stock tables in the newspaper. Aren’t you curious why this happens? … continue
- Microsoft – Quietly flying below the Radar. (Good Model Price Math!)
Notice how the stock price follows along EBV+5. Again these EBV lines are derived from the balance sheet. Forgetting model price for a moment, we can calculate EBV+5 one year out … continue
- Apple – Model Price Update – Next area of Resistance is $600 (Update)
In our blog on February 15, 2012 we noted that AAPL was running and the next area of resistance would be EBV+6, which we calculated to be $600. We reproduced the chart we inserted in our blog for your reference. … continue
- Model Price Outlines Three Scenarios for the S&P 500 Index
How do we look at the US market as a whole? Yes, we have individual charts on every company in the S&P 500 (and many more), so if we could aggregate them into one chart … continue
- BCE – An Investors Dilemma! What is BCE Worth?
Long suffering investors, whether Do-it-Yourself (DIY) types or professionals, have parked some of their portfolios (perhaps all) into BCE. Why?… continue
- Facebook – At What Price Should You be a Buyer of the IPO?
We would be buyers of Facebook™ at a price of $39 per share or lower. Anything higher than this would give us pause. If the stock opens higher than $39 we would watch … continue
- LinkedIn – Model Price Math
LinkedIn (LNKD) reported their December quarter and yearend results Thursday night. These results were viewed positively, obviously with good market action … continue
- Apple – Four Actions Management Can Do To Double Their Stock Price (Without Breaking a Sweat)!
On January 24, Apple Computer released its 1st quarter earnings report. To say it was stunning would be an understatement. Investors’ enthusiasm was wildly optimistic that these big earnings would translate into a big increase in the stock price. … continue
- Netflix – Three BIG questions (and answers) about Netflix
Economic velocity is a concept we talk about all the time in our firm. We rarely see this concept in action however when we do its footprint is undeniable. … continue
- Groupon Inc. – The Model Price Math
Reviewing this company brings back memories of 1999 and 2000. During this period many new companies were born and became household names today, Amazon comes to mind. … continue