Thursday, October 30, 2008

How to Manage Your Stock Portfolio in Uncertain Business Times


Customer engagement is a panacea for the economic issues of today. This is a key difference between business management and academic economics. A healthy Quick Ratio makes nonsense of every credit crunch. Recession is history provided that you are adroit in giving customers what they want.

Consider Kraft Food Incorporated. The Forward Price to Earnings Ratio is well below 20. The Yield is 4.07. The Beta is just 0.5. The Payout Ratio has topped 65% over the past four quarters. Sales have grown by more than a fifth during the Most Recent Quarter. How can such stellar business performance be possible in a deadly mix of inflation and recession?

Take a look at the following link for an answer:


Here is a case for a whole new approach to the stock market. This is what the Private Equity guys have done for decades. Appraise the value of a stock on the basis of what it delivers for customers. Buttress the numbers and ratios with specifics of Interactive Marketing transactions. You will win no matter what the Fed says and does.

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