Update

By; Steve Rubis

Recently, the curve balls of life have kept us from being blog productive. Nevertheless, this extremely busy time has afforded me time to further cogitate in regards to the format of this blog. Most of our articles are unique and provide some interesting insights. The problem is that our product and writing has not adequately differentiated "Stock Research" from the multitude of other financial blogs. In an effort to create a unique brand, our focus will be Equity Valuation.

We believe that there is a void regarding equity valuation within the financial blog genre. Most editors and writers seem to focus on regurgitating the 10K or 10Q and shy away from true equity evaluation. In our eyes, we can provide investors valuable information by providing valuation data first and foremost. Once we find a promising stock, we will provide more background and a write up for that stock. Only companies deemed to be compelling opportunities will receive specific articles.

Our investment process is as follows:

1.) Company selection: either from memory, colleagues, news stories, etc.
2.) Use the companies from item one to determine industry for analysis
3.) Use Yahoo!Finance screening tool to develop industry spreadsheet
4.) Calculate different valuations based on industry averages
5.) Take an average of Take Out Value, Graham Intrinsic Value, P/E Value, P/S Value, P/B, Value, Earnings Power Value, and Reproduction Value to determine Margin of Safety
6.) Calculate Altman Z Score to determine riskiness of opportunity
7.) Compare WACC for specific companies to industry average
8.) Use Earnings Yield to Risk Free Rate ratio to determine risk
9.) Use Cap Rate to determine how attractive the opportunity may be

We think that following the rubric described above will provide investors and readers with a strong ROIT (Return On Invested Time)!