Synopses & Reviews
The principles of investing have always been simple: buy low, sell high. The investor who can find the right stocks to buy at the right time will reap the rewards, but the information needed to make these potentially lucrative decisions is often difficult to come by, then hard to decipher, and rely on. This authoritative new book shows that rational, rigorous analysis is still the most successful way to evaluate securities. It picks up where Graham and Dodd's bestselling Security Analysis-for decades considered the definitive word on the subject-leaves off. Providing a practical, up-to-the-minute view, Security Analysis on Wall Street shows how the values of common stocks are really determined in today's marketplace. Proper stock valuation is one of the most challenging tasks in finance, and it has been the subject of continual discussion and debate over the years. As Hooke points out, "Theories abound on the appropriate methodology for establishing valuation, ranging from the quasi-scientific discipline of the 'intrinsic value' believer to the emotional ravings of the anticipation investor.... The market price of any stock thus represents a jumble of contradictory expectations and hypotheses, influenced constantly by investors processing new data and evaluating changing circumstances." Rising above the "jumble," security analysis dictates that the selection of specific stocks for purchase or sale should be based on a rational analysis of investment values. Applied over the long term, in a disciplined manner, this method can produce superior results. Security Analysis on Wall Street takes a revealing look at the complete security evaluation process and its complex inner workings, as well as the major valuation techniques currently being used by Wall Street professionals. Beginning with an overview of the environment in which stocks are issued, researched, bought, and sold, Hooke examines the roles of the various players, the rules of the markets, and the activities surrounding initial public offerings. He then probes the intricacies of analyzing and reporting on securities with proven methods for evaluating the merits of a stock. This sophisticated yet straightforward system enables the investor to assess profitable firms, as well as marginal performers, leveraged buyouts, and corporate takeovers, and-most importantly-to break down different analyses and get the big answers: Is the security fairly valued, and if not, should it be a "buy" or a "sell"? Incorporating dozens of real-world examples, and spotlighting special analysis cases-including cash flow stocks, unusual industries, and distressed securities-this comprehensive resource delivers all the answers to your questions about security analysis on Wall Street.
Review
"Mr. Hooke does an admirable job of stripping away the wrapping paper to reveal the fundamentals of analyzing companies and their stocks and bonds that are traded in the public marketplace."
—Samuel L. Hayes III, Jacob H. Schiff Professor of Investment Banking, Harvard University Graduate School of Business Administration
"Jeffrey Hooke has provided a comprehensive and readable explanation of the issues involved in determining company valuations. This book should become required reading for analysts and investment managers."
—Steven W. Golann, Director, Mercury Asset Management International Ltd.
"One of the toughest issues facing an investment professional is valuation. Jeff Hooke in his book Security Analysis on Wall Street deals with this issue in a comprehensive manner by providing not only a framework to evaluate the dynamics that determine value, but also tools that can be put to practical use. I consider this book a serious contribution to the art of valuation."
—George Konomos, Investment Manager Cambridge Capital Fund, L.P.
Synopsis
Jeder Aktienkauf oder -verkauf sollte auf einer rationalen Analyse des Anlagewertes beruhen. 'Security Analysis on Wall Street' behandelt die Grundlagen f r jede Analyse anhand modernster Methoden. Diese f r den Lehrbuchbereich aktualisierte Auflage enth lt pro Kapitel einen Fragen-Antwort-Komplex, mit dem der Lernende seinen Wissensstand leicht testen kann. Der Autor gilt als absoluter Experte auf diesem Gebiet. Er ist Direktor der Emerging Markets Partnership, einem privatfinanzierten 4 Milliarden Dollar Aktienfonds, der sich auf Anlagen im Bereich Emerging Markets spezialisiert hat. (10/99)
Synopsis
Security Analysis on Wall Street The principles of investing have always been simple: buy low, sell high. The information needed to make these potentially lucrative decisions, however, is often hard to find, difficult to decipher, and not always reliable. This authoritative new book is the essential reference for students who want to learn the rational, rigorous analysis that is still the most successful way to evaluate securities. Security Analysis on Wall Street explains how the values of common stocks are really determined in today's marketplace and takes a comprehensive look at the entire security evaluation process, as well as the major valuation techniques currently being used by Wall Street professionals. Beginning with an overview of the environment in which stocks are issued, researched, bought, and sold, Hooke examines the roles of the various players, the rules of the markets, and the activities surrounding initial public offerings. He then probes the intricacies of analyzing and reporting on securities with proven methods for evaluating the merits of a stock. This sophisticated yet straightforward system teaches students how to assess profitable firms; understand marginal performers, leveraged buyouts, and corporate takeovers; and-most importantly-to break down different analyses and get the big answers: Is the security fairly valued, and why or why not? "A welcome successor to Graham and Dodd's Security Analysis." -Barron's
Synopsis
A dynamic real-world approach to security analysis.
For more than 65 years, Graham and Dodd's Security Analysis has been the number-one guide on the subject. Offering an up-to-the-minute, real-world view of security analysis as it is currently practiced, this book picks up where Graham and Dodd leave off. Jeffrey Hooke describes the four major valuation techniques now in use, emphasizing the differences between academic abstraction and the nitty-gritty of actual securities trading. He also provides detailed coverage of special situations such as distressed securities, unusual industries, and foreign securities.
Jeffrey C. Hooke (Potomac, Maryland) is a corporate financial consultant. Formerly an investment executive for the International Finance Corporation, he also spent ten years with Lehman Brothers and Schroder Wertheim. He is an adjunct professor at the University of Maryland School of Business.
About the Author
JEFFREY C. HOOKE is a corporate financial consultant based in Chevy Chase, Maryland. He has broad experience in the evaluation of securities in the United States, Europe, and in emerging markets. He has been an investment executive covering emerging markets for the International Finance Corporation, the private sector arm of the World Bank, and he spent ten years in New York as an investment banker with Lehman Brothers and Schroder Wertheim. He is an adjunct professor at the University of Maryland School of Business, where he teaches security analysis. He is the author of M&A: A Practical Guide to Doing the Deal, published by Wiley.
Table of Contents
Introduction
Part I The Investing Environment
1 Why Analyze a Security?
2 Who Is Practicing Security Analysis?
3 Seeking a Level Playing Field
4 Other Sources of Information
Part II Performing the Analysis and Writing the Research Report
5 Starting the Analysis
6 Industry Analysis
7 Company-Specific Analysis
8 Financial Statement Analysis of an Established Business
9 The Limitations of Accounting Data
10 Financial Analysis and Stock Characterization
11 Financial Projection Pointers
Part III Valuation and the Investment Decision
12 Modern Approaches to Valuation
13 The Relative Value Approach
14 Valuing Marginal Performers
15 The Mergers and Acquisitions Market, Leveraged Buyouts, and Takeovers
16 Breakup Analysis
17 Recommended Investment Decision
Part IV Special Cases
18 Cash Flow Stocks
19 Natural Resource Stocks
20 Financial Industry Stocks
21 Insurance Companies
22 Highly Speculative Stocks
23 Distressed Securities and Turnarounds
24 International Stocks
25 Emerging Markets: The Final Frontier
Part V Summary
26 Closing Thoughts on Security Analysis
Index