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Book Review: Contrarian Investment Strategies: The Next Generation by David Dreman

Rating: Above average Background: Book that I picked up to learn about the "official" contrarian strategies. Summary: The key idea is that, buying a set of low P/E, P/CF, P/BV stocks (the study uses the top 1,500 largest companies from the Compustat database), holding it for a long period of time, will bring the greatest … Continue reading

Getting Financial Statements into Excel

I was searching around for the best way to download financial statements into Excel. Here's a summary. Free sources: MSN Money – have to use a web query to get it into excel, pretty decent, but due to the standardisation, the breakdown (e.g. of the cash flow statement) might not be as granular as you … Continue reading

The Real Problem with P/E Ratios

The simple P/E ratio is still being widely used as a proxy for how cheap/expensive a stock is. So what P/E ratio should you use to value your stock? 10? 20? 50? What is the logical basis behind the P/E ratio? Why 10, 20 or 50? That's a major concern that needs to be answered. … Continue reading

Good articles on Employee Stock Options (ESOs)

I was digging around the Net to understand better the issue of expensing of employee stock options for companies. Initially I had the mistaken idea that companies previously could choose to "capitalize" or expense the option grants, and was wondering how exactly do you "capitalize" an option grant, later I found out that you can't: … Continue reading

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