Leading stock indexes may have a little upside left, Greenspan said. But that’s only going to make the inevitable drop more painful. So, “at the end of that run, run for cover,” he said. Even if stocks bump up from here, ‘at the end of that run, run for cover.’
Full Answer
How to calculate stock coverage in days?
Net Stock/ Avg. daily unit sales = Stock Coverage in days. So now that you can calculate your stock coverage in days (or months), you may want to compare this to your lead times (the time it takes to be receipted into your inventory). For example, if your stock coverage is 28 days and it takes 84 days (12 weeks) for stock to be delivered, ...
How long will you be out-of-stock?
For example, if your stock coverage is 28 days and it takes 84 days (12 weeks) for stock to be delivered, there is a good chance you’re going to be Out-of-Stock for 56 days (8 weeks) if unit sales continue on trend for that SKU. And Out-of-stock (OOS) means lost sales, dissatisfied customers and maybe no commissions for a Sales Manager.
What is a covered stock and how do you buy them?
A covered stock refers to a public company's shares for which one or more sell-side equity analysts publish research reports and investment recommendations for their clients.
When should I Sell my stocks?
If your original reason for buying a stock no longer applies, or if you were just plain wrong about the company, then selling at a loss rather than continuing to hold may be your best option. It's important to clearly know when not to sell a stock. Here's a list of some of the situations in which it's inadvisable to sell your shares: 1.
What is covered stock?
A covered stock refers to a public company's shares for which one or more sell-side equity analysts publish research reports and investment recommendations for their clients. Upon commencement of coverage, an analyst will publish an " initiating coverage " report on the stock and subsequently issue research updates, ...
Why do analysts recommend holding a stock?
The reason is that an analyst needs access to the management of the company to perform their work.
Can an analyst drop coverage of a stock?
However, an analyst can drop coverage of a particular stock for various reasons.
What are the reasons to sell a stock?
If something fundamental about the company or its stock changes, that can be a good reason to sell. For example: 1 The company's market share is falling, perhaps because a competitor is offering a superior product for a lower price. 2 Sales growth has noticeably slowed. 3 The company's management has changed, and the new managers are making reckless decisions such as assuming too much debt.
Is it worth holding on to shares after an all cash acquisition?
It's rarely worth holding on to your shares long after the announcement of an all-cash acquisition. For stock or cash-and-stock deals, your decision to hold or sell should be based on whether you have any desire to be a shareholder in the acquiring company.
Is it bad to sell stocks at a loss?
When to sell stocks at a loss. Similarly, it's usually a bad idea to sell a stock only because its price decreased. At the same time, though, sometimes you just have to cut your losses on a stock position. It's important to not let a drop in a stock's price prevent you from selling.
Is it a bad idea to sell stocks?
While a tax strategy known as tax loss harvesting can reduce your taxable capital gains by incurring losses on unprofitable stock positions, it's nonetheless a bad idea to sell stocks just to lower your taxes.
Can a company be acquired in cash?
A company can be acquired in cash, stock, or a combination of the two: For all-cash acquisitions, the stock price typically quickly gravitates toward the acquisition price. But if the deal is not completed, then the company's share price could come crashing back down.
Does the Motley Fool sell stock?
The Motley Fool sells stock regularly, too. While The Motley Fool always approaches investing with a long-term perspective, that doesn't mean we only suggest stocks to buy. We regularly give "sell" recommendations to our members and often for one of the reasons described above.
What are the metrics used to analyze insurance stocks?
To analyze insurance stocks, most standard metrics work -- such as return on equity (ROE) and net margin. However, there are three insurance-specific profitability metrics that you should know before getting started: Loss ratio: This is the percentage of an insurer’s premiums paid out as claims.
Why do insurers purchase reinsurance policies?
In order to protect from catastrophic losses, insurers often purchase reinsurance policies that will cover losses above a certain amount. This can be extremely important to have in the event of natural disasters or mass-casualty events.
How do insurance companies make money?
The obvious way that insurance companies make money is by selling insurance policies and bringing in more money in premiums than they pay out as claims. This is known as an underwriting profit.
Where do insurers invest their float?
Most insurers invest their float in safe places, such as high-quality bonds, but some choose to be a little more adventurous and buy other types of investments. Obviously this is a simplified explanation. Insurance companies have other ways to generate revenue. But this is the main idea behind how the business works.
Is insurance a good investment?
Insurance stocks can make a great addition to any investor’s stock portfolio. Not only does the insurance business have the potential to produce excellent long-term returns, but it’s also a business that works in strong economies as well as during recessions, and anytime in between. With that in mind, here’s an overview of how the insurance business works, some important concepts to know, and three insurance stocks that investors should keep on their radar in 2021.
Is underwriting profit the focus of insurance companies?
However, for most insurance companies, an underwriting profit is not the focus. Many of the largest insurers are completely happy breaking even, or doing slightly better, when it comes to underwriting.
