The Buyback Indicator Still Going Strong?
March 16, 2007 - Buybacks-Secondaries
…share repurchase announcements persist as good indicators of stock undervaluation, most significantly amplified by poor returns over the prior six months.
March 16, 2007 - Buybacks-Secondaries
…share repurchase announcements persist as good indicators of stock undervaluation, most significantly amplified by poor returns over the prior six months.
March 14, 2007 - Sentiment Indicators
…the sentiment of institutional (private) investors probably has some (no) value in predicting stock market returns over a six-month horizon.
March 13, 2007 - Fundamental Valuation, Value Premium
Reader Richard Beddard, editor of Interactive Investor, flagged a series of three studies by Keith Anderson and Chris Brooks on approaches to enhancing the value premium via empirical analysis of the price-earnings ratio (P/E) calculated with lagged earnings. One study seeks to optimize value indication based on the extent and weighting of historical earnings used… Keep Reading
March 12, 2007 - Buybacks-Secondaries
…there is a cycle of cash flow between companies and investors, as the former first sell shares, then buys the shares of other companies and finally buys back their own shares.
March 12, 2007 - Individual Gurus
…Herb Greenberg successfully identify stocks that, on average, underperform the market. However, the high variability of returns for these stocks continues to make trading on “Greenberg mentions” extremely risky.
March 9, 2007 - Value Premium
…institutional herding on hope and fear drives overvaluation (undervaluation) of growth (value) stocks, leading to their future reversals of fortune.
March 8, 2007 - Momentum Investing
…the stock return momentum effect wasn’t there, then it was there for a long time, and now it’s gone.
March 6, 2007 - Individual Investing
…it is very difficult for individual investors to beat the market. Infrequent trading and lower-risk holdings have been key to relative outperformance since 2000.
March 5, 2007 - Buybacks-Secondaries
Are company stock buybacks equivalent to cash dividends for stockholders? Conversely, are company sales of stock “undividends” for stockholders? A forthcoming article in the April 2007 Journal of Finance addresses these questions. In the underlying September 2005 paper entitled “On the Importance of Measuring Payout Yield: Implications for Empirical Asset Pricing”, Jacob Boudoukh, Roni Michaely,… Keep Reading
March 1, 2007 - Animal Spirits
…there is no reliable weather-sun-moon risk premium.