The purpose of Value Line’s Educational Articles is to help individuals better understand the complex world of investments. This section is divided into five categories: Stocks, Funds, Options, Convertibles, and Economy. We are constantly adding educational content so you will want to visit this area regularly to see what Value Line can do to help you with your investment portfolio.
It is often said that “cash is king” in business. Thus, a company’s ability to generate cash can be very telling when measuring its health. Accordingly, investors should pay close attention to the “cash flow” line (sometimes referred to as the “Value Line”) on the Value Line page.
Before we can examine a stock’s Relative P/E (price to earnings ratio), we first need to look at its basic P/E. At Value Line, this is calculated by dividing the recent price of the stock by the total of the last six months of earnings and the next six months of estimated earnings. The resulting figure shows the multiple that investors are currently willing to pay for one dollar of earnings. As is the case with most financial ratios, P/E means very little when viewed on its own, which is why Relative P/E is so important.
Since many people use mutual funds to build wealth over a long period of time, such as retirement savings, a disciplined, regular investment program is an ideal way to meet your financial goals.
Managing a covered call portfolio is more complicated to manage than a stock portfolio. However, a few simple calculations and some basic guidelines can make the task a whole lot simpler. Here, we show you how to decide when to hold, when to roll and when to close position out entirely.
Convertibles are a niche investment that are, unfortunately, on the outskirts of most investors’ radar screens. A quick primer, however, might help change that.
The gross domestic product, popularly known as the GDP, is the total value of the output of all goods and services produced by labor and property within the United States. The purveyor of this news is the National Bureau of Economic Analysis, which is an agency of the U.S. Department of Commerce. Estimates of such data are issued quarterly, with two subsequent monthly revisions being released. The initial estimate of a quarter’s GDP is issued late in the month following the end of that three-month period. First and second revisions come out the following two months. It should be noted that this initial estimate of a quarter’s GDP is based on data that are incomplete. Accordingly, there can be some dramatic revisions as surveys become more complete.
Earnings season is the four times a year, celebrated several-week stretch from early January to early February, from early April to early May, from early July to early August, and from early October to early November in which the vast majority of the nation's corporations report their quarter's sales and earnings--hence the name earnings season.
Education Articles
The purpose of Value Line’s Educational Articles is to help individuals better understand the complex world of investments. This section is divided into five categories: Stocks, Funds, Options, Convertibles, and Economy. We are constantly adding educational content so you will want to visit this area regularly to see what Value Line can do to help you with your investment portfolio.
Stocks
Taking a look at the “Value Line”
It is often said that “cash is king” in business. Thus, a company’s ability to generate cash can be very telling when measuring its health. Accordingly, investors should pay close attention to the “cash flow” line (sometimes referred to as the “Value Line”) on the Value Line page.
What is a Relative PE and Why is it Important?
Before we can examine a stock’s Relative P/E (price to earnings ratio), we first need to look at its basic P/E. At Value Line, this is calculated by dividing the recent price of the stock by the total of the last six months of earnings and the next six months of estimated earnings. The resulting figure shows the multiple that investors are currently willing to pay for one dollar of earnings. As is the case with most financial ratios, P/E means very little when viewed on its own, which is why Relative P/E is so important.
Funds
Dollar-Cost Averaging
Since many people use mutual funds to build wealth over a long period of time, such as retirement savings, a disciplined, regular investment program is an ideal way to meet your financial goals.
Options
Managing a Covered Call Portfolio
Managing a covered call portfolio is more complicated to manage than a stock portfolio. However, a few simple calculations and some basic guidelines can make the task a whole lot simpler. Here, we show you how to decide when to hold, when to roll and when to close position out entirely.
Convertibles
A Convertibles Primer
Convertibles are a niche investment that are, unfortunately, on the outskirts of most investors’ radar screens. A quick primer, however, might help change that.
Economy
A Discussion of the Gross Domestic Product
The gross domestic product, popularly known as the GDP, is the total value of the output of all goods and services produced by labor and property within the United States. The purveyor of this news is the National Bureau of Economic Analysis, which is an agency of the U.S. Department of Commerce. Estimates of such data are issued quarterly, with two subsequent monthly revisions being released. The initial estimate of a quarter’s GDP is issued late in the month following the end of that three-month period. First and second revisions come out the following two months. It should be noted that this initial estimate of a quarter’s GDP is based on data that are incomplete. Accordingly, there can be some dramatic revisions as surveys become more complete.
Earnings Season
Earnings season is the four times a year, celebrated several-week stretch from early January to early February, from early April to early May, from early July to early August, and from early October to early November in which the vast majority of the nation's corporations report their quarter's sales and earnings--hence the name earnings season.