ROIC is N/A on MSN

[wildorchidlb]

Hi guys!

Question. I'm new to Rule #1 and decided to practice what I've learned from the book with Bank of America (BAC) since my husband company's is being bought by them, but when I went to MSN to locate the ROIC for 1 and 5 years it's listed at N/A. What does that mean? Should I go ahead and calculate the ROIC manually using NOPAT/ (equity + debt) and ignore what is on MSN? Any suggestions?

Thank you

[Gunnski]

I hope this helps; Via Scottrade. (My Fav.). Via Reuters. & S&P Reports that Scottrae provides (free).

ROIC:

3 yr: 5.8
5 yr: 6.6
10yr: 6.2

Please do not get caught up in the short term bounce on BAC. Long term trend is DOWN!!!

I have a down & dirty (52 wk. high v. 52 wk. low & some other stuff) @ $31.20 as MOS.

Using MSN & Phil Town's web site MOS= $36.17.

That last closing candle is not a HAMMER or DOJI, it is more of a CROSS on The HILL (not good).

Please click on chart:


Cross on a Hill:




Best of investing!

[wildorchidlb]

Thank you for responding to my post and providing me with that information. However, you lost me after MOS $31.20. I know nothing about charts and what they mean just yet, but I'm working on it. Also can you direct me to exactly where you got the ROIC for BAC on Scottrade because I can't seem to find it. Thank you again!

[Gunnski]

On Scottrade under Quoates & Research. Click on that. Put in BAC in the symbol box.

When the BAC info., pops up click in PDF Reports, either S&P or Reuters. The ROIC info. is located in those reports.

[Stockowner]

I personally think technical analysis is close to financial insanity. Would you buy a resturant because one person a week ago asked to buy the resturant for 2 million, and then another yesterday offered to buy it for 1,5 million, and today another person offering once again for 2 million, and you see some sort of "pattern" and then you buy a whole resturant just because of a zig-zag, up-and-down EMA DEBA ETI or whatever you chose to call the pattern?

Technical analysis doesn't care about if the business is making money or losing money, or how much money it is making.

[Gunnski]

It makes more sense to GUESS what future earnings may be on your wonderful business? Now, that's the ticket.

Remember, all that really matters is price. Price, pattern and time. Where do you find that?

Yes, on a chart.

Trade what you can see, not what you think is going to happen!

[Stockowner]

It makes more sense to GUESS what future earnings may be on your wonderful business?

I was about to edit my post and add that, but I thought it got the point across. You are right though.

Remember, all that really matters is price. Price, pattern and time. Where do you find that?

Why pattern?

I wouldn't care about pattern if I could have bought Wal Mart or Washington Pos in the 70's, or Microsoft in the 80's. A pattern doesn't matter because a business is a business, and if a business makes good money over time, the stock price will reflect that.


And you'll find price in relation to the company's fundamentals, not just out of the ticker price. A company having a share value of 5-10 dollars (think Ford) may be a bad investment, and buying a share costing 3,000 may be a good buy (think Berkshire), or vica versa. The stock price alone tells us very little.

Trade what you can see, not what you think is going to happen!

If you are into trading, that's well and fine. But I thought this was an investment community? There are plenty of trading forums, I imagine..

[Gunnski]

All good points. It is important as stated here many times to determine are you and investor or trader? What is your risk tolerance? What is the market doing?

To be narrow minded & not want to research & consider other people's ideas is truely amazing to me. I respect your opinion, but who deputized you as the "board police"?

To not want to broaden your horizons & learn as much as you can, obtain more tools, to help make you a better investor. Is very narrow minded.

That is why you are looking at charts from the 70's & 80's. That may help you a lot. At least your looking at them. You may want to try a more recent chart. The markets do change from time to time, but oh, free cash flow looks so good!~

Best of investing!

[Stockowner]

To be narrow minded & not want to research & consider other people's ideas is truely amazing to me. I respect your opinion, but who deputized you as the "board police"?

I might have come across as a bit rude.. For that I am sorry. What I was trying to convey is that as a trader, you might get more positive feedback at a trading forum.

I'd never go on a trading forum as an investor, because the feedback wouldn't be that constructive.

[petekoch]

For banks, ROIC is not of much use.

ROA is the metric of choice.