Exxon Gets Gas

Exxon stunned Wall Street on Monday announcing a deal to buy XTO Energy. This is not just a play on natural gas. This is also a play on unconventional asset exploration. Today’s video looks at these two companies based on historical earnings. Best when viewed in full youtube screen. Both companies experienced earnings declines following energy Read more about Exxon Gets Gas[…]

To the Max

In the long run the relationship between earnings and market price is very correlated. In the short run, price volatility may do anything which can be unnerving. I believe buy and sell decisions are more intelligent when based on earnings rather than price. Today’s video on TJX Companies, Inc. shows how price is driven by profits. Read more about To the Max[…]

Have a Heart II

 On Monday I blogged about how the stock market had been overvaluing Medtronic. I believe the principle of valuation is critical to sound investment analysis. Unfortunately, I believe it is also a principle that is most often neglected. Overvaluation can destroy the returns of strong businesses. Undervaluation can enhance them. Sound valuation should mirror operating Read more about Have a Heart II[…]

Have a Heart!

I often blog about how the so-called stock market can misprice stocks. It is not uncommon for the market to overvalue or undervalue a company. Usually these inefficiencies correct themselves very quickly. Sometimes they take longer to fix. In my opinion, when the market overvalues, risk is higher. On the other hand, undervaluation mitigates risk. Read more about Have a Heart![…]

Value versus Volatility

All stock price movements do not mean the same thing. For example, the market collapse last year dropped most stocks. In truth, based on fundamentals some deserved to fall, while some did not. Understanding this distinction is a vital investor attribute. Today’s video will look at financials, two banks and two insurers. See if you can see Read more about Value versus Volatility[…]