Stock Profits : Getting to the Core--New Fundamentals for a New Age

Table of Contents:

Preface.

I. THE TECHNIQUES.

1. Core Earnings Calculations: A Revised Approach.

Applying the Core Earnings Idea.

The Emergence of the Core Earnings Idea.

A Premise for Stock Selection: Accuracy in the Financials.

Examples of Core Earnings Adjustments.

Long-Term Direction in Corporate Valuation.

Accounting Problems and Stock Selection.

Fundamental Versus Technical Approaches.

Endnotes.

2. Trend Discovery: Finding the Elements of Emerging Change.

The Trends that Affect Long-Term Value.

Balancing PE and Market Perceptions: Looking to the Future.

Distinctions: Investment Value and Current Market Value.

Applying PE Tests.

A Four-Part Approach to Analysis.

Endnotes.

3. Trend Interpretation: Deciding What It Means.

Sales Trends: Identifying Core Revenue.

Sales by Operating Unit or Product.

Sales Interpretation with Changed Segment Mix.

Net Earnings Trends.

Capitalization Trends.

PE Ratio and Core PE Ratio.

4. Confirmation: A Powerful Analytical Technique.

The Dow Theory: Trends and Confirmation.

Confirmation as a Means for Identifying Primary Trends.

Confirmation to Test the Reliability of the Numbers.

Translating Confirming Indicators to Stock Selection Criteria.

Confirmation Applied to Market Price Trends.

5. Fundamental Volatility.

Expanding the Definition of Risk.

Redefining Market Risk.

Guidelines for Treatment of Exceptions.

Fundamentals as the Basis of Market Risk.

Positive and Negative Aspects of Fundamental Volatility.

Using Volatility to Pick Stocks.

Endnotes.

II. THE TOOLS.

6. Investigation: Verifying the Financials.

The Question of Trust: Motives at the Corporate Level.

Healthy Suspicions: How Much Trust Can You Place in the Report?

The Revealing Nature of Investigation.

Trends as the Test of Accuracy: Investigative Techniques.

Endnotes.

7. The Core Earnings Workbook: Finding the Numbers.

Conclusion.

8. The Trend: Workbook: Breaking the Code.

9. Looking Ahead: The Core Roadmap.

The Concept of Corporate Governance.

Symptoms of Governance Quality: Investor Relations.

New Standards for Corporate Reporting.

Coordinating Governance with Core Earnings-Based Reporting.

Risk Tolerance Defined in Terms of Volatility.

Transferring Risk Management into Action.

Applying the Scientific Method.

Working for Reform: A Concluding Action List.

Endnotes.

Index.