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Written by Dr. Econ
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Wednesday, 13 July 2011 00:00 |
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One must use the power of Economics & Statistics combined with knowledge of Finance. That is the primary reason the website is named EFS Investment. I use fundamental analysis to pick the best stocks for the long term. I use statistical analysis to benefit from cyclical market anomalies, and I use technical analysis to confirm my decisions. My long-term stock picking models are back-tested. Before choosing any stock, I go back 5 years, and see how my models could have worked so far. I continuously perform sector wide back tests within specific sectors, and check the past data to make future estimations. If investors used my models, those bubbles would have never existed. Investment is not an art; it is a science which can be learned through reading, application, and experience. I am not a trader, nor a market player. One can enjoy short-term rewards at the risk of losing large amount of capital in the long run. Thanks to my access to special trading software, I can make my decisions on a global scale. I am on the bullish side of the market: A ttm [trailing twelve month] P/E ratio of 15 (+-5) is well justified for the U.S. market. Here, is my last 20 articles on SeekingAlpha:

You can download the Fair Value + O-Metrix + Graham Margin of Safety Formula Excel Sheets. I put a description of those formulas in a separate sheet for convenience.
Attachments:
| File | Description | Uploader | File size | Last modified |
| Fair Value Estimator | Fair Value + O-Metrix + LongTermValuation Formulas | Dr. Econ | 32 Kb | 15/09/11 05:24 |
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Last Updated on Thursday, 06 October 2011 06:55 |
Comments
I am using smf_addin for Excel by the way, it's pretty slick:
http://finance.groups.yahoo.com/group/smf_addin/
I usually get this information from the Federal Bank of St. Louis, which offers Moody's corporate bond data:
http://research.stlouisfed.org/fred2/categories/119
For a company with a strong balance sheet as Coke, I would use AAA rating, which is 4.37 as of September 2011.
For your Fair Value Estimator spreadsheet, where do you typically pull the information for the "corporate bond yield" line item?
When I do a search here for Coke, there are about 27 bonds, and they have a few different ratings.
I was looking to see if I could automate that line by pulling it automatically into Excel, if possible, so wanted to see how it was calculated.
http://reports.finance.yahoo.com/z1?b=2&is=coca&so=d
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