Volatility is up-and-down movement of the market. It's usually measured by the standard deviation from the expectation. Any movement up or down from its expectation is the volatility (Ibbotson, 2013). There are many reasons for volatility, these include investor confidence, uncertainty and economic conditions.
Cabcharge’s volatility started 2011 after the Victorian State Government launched a formal inquiry into the practices of the taxi & hire care industry. The first significant drop in share price can be attributed to the draft report released on May 31 2012 as a result of this inquiry, which proposed over 100 recommendations of changes to be made in the taxi and hire car industry. The findings within the draft report shed light on some of the activities conducted Cabcharge which were seen as negative by shareholders and the wider community. Following a parliamentary inquiry that was partly established by the Greens, it was revealed that Cabcharge had donated over $135,000 to the NSW Labour Party and almost $70,000 to the NSW Liberals. Claims were made that donations had been made to gain the support of state politicians.
The period of July 2012 to August 2012 saw sharp growth in the share price of Cabcharge (CAB as listed on the ASX) as a result of their acquisition of Deane’s, a 97 bus operation based in Queanbeyan with services operating Canberra and Yass. This was supported by the release of a very favourable annual report for the financial year ended 30 June 2012. A healthy profit figure of $68.7m for the year (up 12.3% from the previous year) and an increase of 4.2% in year on year revenue ($192m) restored shareholder confidence in the firm.
The biggest drop in share price can be seen between November 2012 and Decemb...
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...nue ($196.6m), 1.04% in reported NPAT ($60.6m) and 1.31% in reported EPS (50.3 c). Also outlined in the annual report was the final dividend for 2H13 of 12 cents. This brought the full year dividend to 30 cents, fully franked, compared to 35 cents in FY12. The record date for the final dividend was 27th September 2013, where a steep drop in share price is visible. The correlation between share price and dividend is widely known. As a company reduces the dividend it pays on a share, the less attractive it becomes to investors and, as such, will result in a drop in share price.
The Cabcharge share price ended 2013 at almost an all time low however, with the announcement of 1H13 results it seems as if there is a positive outlook surrounding the growth of the company in the long term, which is reflected in the increase to their share price in the early months of 2014.
...ck trends past performance is an indicator of future performance. Therefore, investors should proceed with caution when investing in Champion Enterprise.
• Qantas had to make an increased profit and pay a dividend to its shareholders which increased over the years of management
The stock price is currently 103.31, down from a recent high of 121.50. The P/E ratio is declining at 28 and beta at .67, which is expected to grow closer to 1.0. A recent earnings surprise last December yielded a 15% difference from the lower expectations and the latest earnings reports late last month also surprised investors. Estimates for the 2000 fiscal year are being raised by a large majority of analyst who believe that earnings per share will increase and the stock price will reach close to 150.
1. Using the consolidated financial data for Crown, Cork and Seal, identify and post trends you think are both positive and negative for the company. Positive Trends In reviewing 1982 to 1988, Crown Cork and Seal’s net sales, net profit rose, and gross margin increased. These numbers grew while their selling, general and administrative expenses decreased from 3.3% of sales in 1982 to 2.8% of sales in 1989.
On 13, March 2016, the board of directors provides approval to increase the quarterly cash dividend of shareholders by 11.1%. which is increased from $0.09 per share to $0.10 per
The first financial ratio of the analysis is the Price to Earnings ratio (“P/E ratio”). The ratio is computed by dividing the price of one share of common stock, by the earnings per share of common stock. This analysis uses diluted earnings per share which assumes the issuance of new stock for all existing stock options. Also, the price of the stock was computed as an average of the fourth quarter high and low stock prices published in the 10K report of each company, because the year end stock prices were not listed for all the companies. Because the P/E ratio measures the relative costliness of different stocks, in relation to their income, it provides a useful place to begin the analysis.
In the US there is a large population of outdoor enthusiasts. In 2012 revenue was $3.1 billion and was in increase of 21% from 2008 levels.3 The profits more than doubled over that time span to $173 million.3 About half of Cabela’s sales are associated with hunting related merchandise, and one third of sales are associated with guns and ammunition as well.4 These two statistics do have overlap, hunting merchandise does include guns but not all guns are used for hunting type deal. From 2008 through 2013 stock prices have surged by 440%.3 This gives Cabela’s a market value of $4.7 billion.3 Reasons for the sharp increase in value stem from the rise in gun sales. More restrictive gun control legislation has been discussed lately and this has caused surge for consumers to buy guns before there are the new gun control measures. Gun sales are always welcomed by Cabela’s but there are low profit margins.4 Even with the low profit margins, gun sales do drive more business overall to Cabela’s. Ammunition sales and gun accessories benefit from higher gun sales. Cabela’s also benefits from the
The average offer price per share as a multiple of EPS for recent railroad acquisitions is 17.22 times. If we multiply that by Conrail's expected EPS for 1997 of $5.69 we get an offer price per share of $97.98. This is substantially higher than the front-end cash offer from CSX of $92.50. We also looked at enterprise value as a multiple of EBITDA. The average for recent railroad acquisitions is and enterprise value of 10.58 times EBITDA. Conrail's EBITDA for the last four quarters is $1,017 million. This calculation gives us an enterprise value of $10,760 million. We calculated the two-tiered offer to be $8,185 million from CSX in Appendix 3. This is significantly lower than the estimated enterprise value calculated based on
The main contributing factor to the decline in the return on stockholders’ equity (25.37% to 8.73%) was the decline in the profit margin (11.79% vs. 5.08%). The decrease in asset turnover (1.11 to 1.00) made a small contribution to the decline, as did the decline in the debt ratio (48.4% to 41.8%).
Over the past two years, the company has suffered a $17.00/share loss on its stock (from $30 to $13.00) mainly due to declining operating margins (Domash, 2004) caused by over-optimism in the Texas market. Competitors were more deeply entrenched than their research had shown, and reduced earnings forecasts combined with declining operating margins were the sell signal for many investors in the company. Also, the need to upgrade their IT infrastructure to support expansion in its California base market was the second company downfall. The following is a summary of the company strategy:
...ccurately reflects the intrinsic value of the company from the shareholders point of view and their expectations of future earnings.
Standard Deviation is a measure about how spreads the numbers are. It describes the dispersion of a data set from its mean. If the dispersion of the data set is higher from the mean value, then the deviation is also higher. It is expressed as the Greek letter Sigma (σ).
After the announcement of higher- than-expected profit on 31st July 2015, the share price went from 727.5p to
The basic earnings per ordinary share in 2016 is RM19.14 and RM14.30 in 2015. This shows that the ordinary share had been increased RM4.84 compare to 2016 based on 2015. In the other hand, this company had declared a first interim single-tier dividend of 10 sen per ordinary share amounting to RM22.88 million in respect of the financial year ended 31 December 2016. They sold their ordinary shares of RM400,000,000 units of RM0.50 per each in 2016 and RM200,000,000 units of RM0.50 per each in 2015 to their shareholders. It is increased from 2015 to 2016 with 200,000,000 units. The other investments that available for sale is RM1000 same as in 2015 and 2016.
In January 2004 the company’s CEO, Jeffrey Bleustein, stated that Harley-Davidson’s earnings growth rate should fall in the mid-teens for the foreseeable further and the company expected to increase unit sales to 400,000 units by 2007. However, not everyone was as bullish