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Surplus cash generated from company’s basic operations without regard to income tax entries such as depreciation and amortization. Changes in levels of inventories, accounts receivable and accounts payable also affect cash flow. Also see Free Cash Flow. 

This is a level where a stock has a difficult time moving through. Resistance levels can be caused by former tops, breakout prices, moving averages, or just price levels where a stock has spent a lot of time in the past. When choosing buy levels, we watch for a stock to break through resistance on good volume. That indicates the move through the resistance is strong, and that the stock will most likely stay above that resistance. In such situations, former resistance then becomes support. When we take a position coming off of support, we always look for resistance levels as points where we may encounter resistance so we do not lose gains we have banked if resistance proves too much.

Latest share price divided by book value stated in latest report.

This is the price at which a security opens for the trading day. A stock can open at the previous closing price, gap up or gap down.

Material given to stockholders when the corporation solicits shareholder votes. The proxy statement usually contains details on the corporation’s executive compensation plans. 

Not the same as operating income. See pro forma earnings. 

Latest share price divided by 12-month earnings per share (eps). Also a measure of the market’s enthusiasm for a company.

The Registered Trader assigned by the Selection Committee to act as market maker in a security. Their duties include providing a minimum guaranteed fill, maintaining minimum spread and ensuring orderly trading.

We use this with respect to options trades in determining if we like an option enough to buy it or if we are in an option, if we want to stay in it. This calculation tells you how far the underlying stock must move before the option will double in value. We prefer a 7%-10% value, less if we can get it. This does not mean we will not buy an option, but it does give us insight as to how long we will hold it. Percent to double is a Smith Barney proprietary calculation.

An eight or nine-digit number assigned to every order entered into the system.