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Companies currently out of favor with investors. These companies usually have low valuation ratios (price/earnings less than the S&P 500, price/sales ratio less than 2, price/book ratio less than 2). 

The process whereby an in-depth examination of a company’s business prospects is conducted.

An investor involved in financing a company’s operations before going public in exchange for an ownership percentage.

A method of allocating shares in an IPO where you specify how much you’re willing to pay for how many shares.

After tax 12-month’s earnings divided by the number of shares outstanding. 

When the market or security tends to vary often and wildly in prices, it is said to be volatile.

Earnings before interest and taxes. Also known as operating income. 

The measurement of how much an underlying security fluctuates over a period of time.

Earnings before interest, taxes, depreciation and amortization. Adds these items back to reported earnings to more accurately reflect real cash earnings of company. Similar to operating cash flow, except operating cash flow also considers changes in levels of inventories and receivables.

Volume is the daily number of shares of a security that are traded. Volume is one of the most important indicators we watch. Its relation with price movements tells us 90% of the story behind a stock?s movement and future movements. At its simplest, increased volume on increasing prices shows accumulation. Increased volume on lower prices shows distribution. There are many variations on this theme, and we spend a great deal of time poring over price/volume relations to determine which way a stock will move.