Securities Analysis
By John Schroy, on February 26th, 2007 |

Commonsense analysis shows that US equities are at least 40% overvalued, a conclusion supported by many academics and John Burr Williams’s formula.
This suggests that many retirement plans, based on equity investments, may be in trouble, if (or better, when) stocks fall to reasonable values.
This article, using John Burr Williams’ famous formula, shows how the market may be valued.
US Equities
By John Schroy, on February 10th, 2007 |

Depending upon your point of view, the US stock market is either vastly over-priced, or a great bargain — and if you have a split personality, you could both be right!
This peculiar state of affairs occurs because two radically different yardsticks can be applied in measuring corporate performance: one based on an unquestioning respect for Generally Accepted Accounting Principles, and the other based on commonsense, an appreciation for cash in hand, and the time-honored principle of, ‘What’s in it for me?’.
Harvard Business School
By John Schroy, on February 3rd, 2007 |

The Harvard Business Review of February 2007, featured a list of “Breakthrough Ideas for 2007″ that shed light on the regard that US business executives and their mentors have for stockholders. The HBR recommendation was that executives who found their company with too much cash and who didn’t want shareholders to find out that they did not know what to do with the money, should speculate in the takeover market, even though this was extremely risky and lacking opportunities. The obvious solution, “pay dividends” was ruled out as embarrassing.
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