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Re: nole92 post# 312

Sunday, 11/14/2010 7:09:32 PM

Sunday, November 14, 2010 7:09:32 PM

Post# of 340
VV's analysis on it is:

Value: Value is a measure of a stock's current worth. CMKM has a current Value of $1.42 per share. Therefore, it is undervalued compared to its Price of $0.66 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.

RV (Relative Value): RV is an indicator of long-term price appreciation potential. CMKM has an RV of 1.48, which is excellent on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the purchase of stocks with RV ratings above 1.00.

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