FAQ

What stock exchanges does Argent Financial provide calculations for?

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All subscriptions are one year.

Glossary

Market Price - The price at which that the stock is currently selling.

Retail Price - Retail Price is the price that a stock should be selling for based on a company's financial and performance information. The Retail Price of a stock is based on Intrinsic Value, the value of a company based on an underlying perception of the value. The value of a stock issued by this company is justified by factors such as assets, dividends, earnings, and management quality. Intrinsic value is at the core of fundamental analysis since it is used in an attempt to calculate the value for an individual stock and then compare it with the market price. Because analysts view facts differently, there is often a wide disparity in estimates of a particular stock's intrinsic value.

Bargain Price - The price that a Value Investor would consider a good price to buy a stock. The Bargain Price is the price that an investor would pay for a stock using a margin of safety; one should buy a stock when it is worth more than its price on the market. This is the central thesis of value investing philosophy which espouses preservation of capital as its first rule of investing. Benjamin Graham suggested looking at unpopular or neglected companies with low P/E and P/B ratios. One should also analyze financial statements and footnotes to understand whether companies have hidden assets (e.g., investments in other companies) that are potentially unnoticed by the market.

The margin of safety protects the investor from both poor decisions and downturns in the market. Because fair value is difficult to accurately compute, the margin of safety gives the investor room for error.

A common interpretation of margin of safety is how far below intrinsic value one is paying for a stock. For high quality issues, value investors typically want to pay 90 cents for a dollar (90% of intrinsic value) while more speculative stocks should be purchased for up to a 50 percent discount to intrinsic value (pay 50 cents for a dollar).

Return on Investment Capital (ROIC) - The rate of return a business makes on the cash it invests in itself every year.

Sales Growth Rate - Sales Growth Rate is the rate at which sales are growing year to year.

Earnings per share (EPS) Growth Rate - The earnings per share growth rate indicates the amount of growth for investors. The trend in this ratio indicates whether growth is steady, sporadic, accelerating or declining.

Equity or Book Value per share (BVPS), Growth Rate - This is the average growth rate in the value a company would have if it was no longer in business over time.

Free Cash Flow Growth Rate - The growth rate that free cash, the cash that is left over after running the business, changes over time.

Time until Debit is Paid off - This is the company's long term debt divided by its current free cash flow. The resulting number shows the time frame the company will need to pay of their long term debt.

Average P/E - This number is the average of the Price/Earnings Ratio over time.

Analyst EPS - The EPS that market analysts are looking for the company to deliver in the future.

Overall Average Growth Rate - This is the combined average growth rate of the Big Five - Sales, Earnings per share (EPS), Equity or Book Value per share (BVPS), Free Cash Flow, and Return on Invested Capital (ROIC).

Value Stock Investing buy or sell trigger - This is a price trigger that shows when a stock should be bought or sold based on three financial tools; MACD, Stochastic and Moving Average.

Intrinsic Value - The current value of a business based on its future surplus cash flow, A.K.A. Retail Price

Value Investing - Value investing is an investment paradigm that derives from the ideas on investment and speculation that Ben Graham & David Dodd began teaching at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis. Although value investing has taken many forms since its inception, it generally involves buying securities whose shares appear under priced by some form(s) of fundamental analysis.

EPS - Earnings per share of stock.

Price/Earnings Ratio - The P/E ratio (price-to-earnings ratio) of a stock (also called its "earnings multiple", or simply "multiple", "P/E", or "PE") is a measure of the price paid for a share relative to the annual income or profit earned by the firm per share. A higher P/E ratio means that investors are paying more for each unit of income.

New York Stock Exchange - NYSE - The New York Stock Exchange (NYSE), nicknamed the "Big Board," is a New York City - based stock exchange. It is one of the largest stock exchanges in the world by dollar volume and, with 2,764 listed securities, has the second most securities of all stock exchanges.

Nasdaq National Market - The NASDAQ (acronym of National Association of Securities Dealers Automated Quotation System) is an American stock exchange. It is the largest electronic screen-based equity securities trading market in the United States. With approximately 3,200 companies, it lists more companies and has more trades per day than any other U.S. market.

It was founded in 1971 by the National Association of Securities Dealers (NASD), who divested themselves of it in a series of sales in 2000 and 2001. It is owned and operated by the NASDAQ OMX Group, the stock of which was listed on its own stock exchange in 2002, and is monitored by the Securities and Exchange Commission (SEC).

Nasdaq Capital Market - Originally called the NASDAQ Small Cap Market, NASDAQ announced a name change to the NASDAQ Capital Market on September 27, 2005.

The NASDAQ Capital Market exists for securities of smaller, less-capitalized companies (small caps) that do not qualify for inclusion in the Nasdaq National Market.

American Stock Exchange - AMEX - The American Stock Exchange (AMEX) is an American stock exchange situated in New York. AMEX is a mutual organization, owned by its members. Until 1929 it was known as the New York Curb Exchange. On 2008-01-17, NYSE Euronext announced it would acquire the American Stock Exchange for $260 million in stock.