October 23, 2011 in Finance (F)
[prMac.com] Vancouver, Canada - Independent developer Kaveh Taheri has announced the update to StockAnalyzer for iPhone. The update includes a watchlist where up to 10 stock analytics can be stored. Saved analytics data can then be accessed without a need for network access (WiFi/3G).
Analyzing a stock requires determining key performance metrics as well as the right buy or sells target prices. Performance is determined by calculating growth rates such as return on investment capital (ROIC), equity, earnings per share (EPS), sales, and cash over the past years. A good performing stock will demonstrate consistent double-digit growth rates.
Once a stock is deemed a good performer based on its growth rate numbers, the next step is to calculate its intrinsic price (also referred to as sticker price, fair value, or true value), followed by its discount price (also referred to as margin of safety price, or sale price). Buying stocks at or below the discount price means paying a lot less for a stock than it is worth.
Determining growth rates and intrinsic and discount prices are lengthy and tedious and involve performing numerous calculations on a large pool of raw financial data associated with a specific stock. StockAnalyzer app makes this process easy by performing these calculations in a matter of few seconds. StockAnalyzer app provides multiple intrinsic and discount prices per stock. This is the only app that uses future EPS for determining intrinsic and discount prices (which provides more accurate results compared to using the current EPS).
StockAnalyzer App performs the following Calculations:
Short % Float:
* The short percent of float is the percentage of shares that are short, in relation to the number of shares that make up a stock's float
* A Short % of Float value of greater that 10% is considered a warning (large short interest)
* Growth Rates are used for determining the strength of a business, such as ROIC, Equity, EPS, Sales, Operating Cash, Net Cash
Growth Rate Score:
* This rating system can be used for quick evaluation of the Growth Rates
PE Ex Net Cash:
* Companies with large cash holdings could be viewed as more inexpensive than their price/earnings multiples indicate
* The "PE Ex Net Cash" is an adjusted P/E ratio calculated based on "Stock Price - Net Cash per Share"
Years To Service Debt:
* Another factor to consider when evaluating a company is its debt and the number of years that will take to payoff that debt using its cash flow
* "Years to Service Debt" = ("Total Long Term Debt") / ("Free Cash Flow")
* A value of greater than 3 years could be considered a warning
* The number of years it takes to recover your investment if you were to purchase the whole business. Payback Time is used as another method for determining the margin of safety of a stock
* Also referred to as Sticker Price, Fair Value, or True Value, is calculated from future market price in 10 years, assuming annual rate of return of 15%
* Five intrinsic prices are calculated based on different future growth rate values (formulas are explained in the app)
* Discount Price is 50% of Intrinsic Price. This price provides a Margin of Safety over the Intrinsic Price
Discount Price Score:
* This rating system can be used for quick evaluation of the Discount (aka Margin of Safety) Prices
Additionally, StockAnalyzer app provides three technical indicators used for identifying buy or sell momentum: 10-day Moving Average, MACD, and Slow Stochastic.
* iPhone, iPad, and iPod touch
* iOS 3.0 or later
* 1.7 MB
* Internet access: required for performing stock analysis; not required for accessing the watchlist.
Pricing and Availability:
StockAnalyzer 2.2 is only $2.99 USD (or equivalent amount in other currencies) and available worldwide exclusively through the App Store in the Finance category.
Kaveh Taheri lives in Vancouver, BC, Canada and is an independent developer and investor. Copyright (C) 2011 Kaveh Taheri. All Rights Reserved. Apple, the Apple logo, iPod, the iPod logo, are registered trademarks of Apple Computer in the U.S. and/or other countries.