Valuation of Internet and Technology Stocks offers practical information on how to value internet and high-tech companies more accurately. The book reviews previous practice, highlights the deficiencies in existing stock market techniques, and shows how to modify or replace them. It also demonstrates how the New Economics necessitates new forms of investment analysis. This book presents new ways of looking, researching and valuing internet and high-tech companies. It explains why there has been a high correlation between high loss companies and a rocketing stock price. It questions whether there is still a place for discounted cash flows when there is no cash flow to discount. It also considers what new methods are available to value super growth companies and whether these methods are any better than existing techniques. Chapters deal with a wide range of topics including: where technology/internet stocks fit in a new economy; how you value traditional common stocks; application of the Porter model to the valuation of technology/internet stocks; problems with applying traditional valuation models for technology/internet stocks; derivative markets and real options; and the lessons that can be learned by investors from the year 2000 collapse of technology/internet stocks. This text will be of interest to traders, investment managers, institutional investors, plan managers, and finance professionals. * Investigates why there has been a high correlation between high loss companies and a rocketing stock price* Questions whether there is still a place for discounted cash flows when there is no cash flow to discount* Considers what new methods are available to value super growth companies and whether these methods are any better than existing techniques

A simple , realistic guide to adopting an investment strategy for internet and technology stock. Now is the time to get back into the market after the boom and bust of the dot com days has settled. By adopting a long-short portfolio and trading according to some simple rules, any investor can make a good return.

The contribution of research and development to a company's market value has grown considerably in recent years. In the mid-1970s, accountants were able to capture on their ledgers 90-95% of a firm's book value, but by 2000 the importance of intangible assets had grown to the point where they could account for only 13-15%. Financial economists and accountants have investigated the link between a firm's market value and its R & D spending, and various factions advocate a variety of positions on the amount and rate of investment, investors' ability to capture returns on that investment, and ways to measure value, investment, and returns. 'Tech Stock Valuation' extends the R & D literature by providing detailed direct evidence on the market value implications of inventive and innovative output. Specifically, the book demonstrates that stock-price effects of patent output are most pronounced in the case of of high-quality patents, where patent quality is measured by scientific merit. Scientific measures of patent quality give tech stock investors and R & D managers a valuable new tool that can be used to measure R & D program effectiveness. At the same time, it gives investors a new tool to help them assess the value of hard-to-measure intangible assets. *Provides detailed direct evidence on the market value implications of inventive and innovative output *Based on recent research, much of which Dr. Hirschey has pioneered *Gives financial professionals a new tool for assessing R & D quality and its relation to market valuation.

Inhaltsangabe:Abstract: The purpose of this thesis is to discuss some important reasons for the recent boom of Internet stocks, and to show and assess different methods to evaluate them. The Internet is a medium which is yet in the early days of its development and which will revolutionize communication habits, trade and leisure time behavior in an unseen manner. I will show this in the chapters 2 and 3 with psychological reasons for the recent boom. After that I present 3 typical Internet companies (Yahoo!, eBay, and Amazon.com) with their business content, financial data, and future outlook. Afterwards, the analyzing part of this thesis starts, and I demonstrate which figures an investor should look at in order to have a broad overview about the investment. In chapter 5 I present some financial figures from both the income statement as well as the balance sheet, in chapter 6 I give a survey of ratios which are used from analysts and make some comments about how practical they are. Subsequently, chapter 7 deals with more traditional valuation methods, used by institutions like the Federal Bank of America. These are general methods in order to show whether markets are over-/ undervalued or not. After that, I present the valuation models used by investment banks: Economic Value Added (EVA, chapter 9), Discounted Cash Flow (DCF, chapter 10), Real options theory (chapter 11), and multiples (chapter 12). In the last part I summarize the outcome and give an outlook how Stock orders are based on expectations only. Inhaltsverzeichnis:Table of contents: 1.Introduction1 2.Day traders6 3.Principle of floating12 4.Presentation of 3 typical Internet companies: Yahoo!, eBay, and Amazon.com15 4.1Yahoo!16 4.1.1Business description16 4.1.2Financial data20 4.1.3The outlook24 4.2eBay26 4.2.1Business description26 4.2.2Financial data27 4.2.3The outlook29 4.3Amazon.com31 4.3.1Business description31 4.3.2Financial data34 4.3.3The outlook36 4.4Comparison eBay versus Amazon.com41 5.Financial figures to look at 5.1Income statement analysis45 5.1.1Sales45 5.1.2Gross margin46 5.1.3Operating expenses46 5.2Balance sheet analysis47 5.2.1Inventories47 5.2.2Cash position47 5.2.3Quality of the management48 5.2.4The competitive landscape50 5.2.5Market position50 6.Ratios51 6.1Return an marketing52 6.2Price earnings to growth52 6.3Price/earnings (P/E) ratios as a traditional method56 6.4Price/sales ratio57 6.5Debt/capital [...]

Now updated and revised--this national bestseller can help anyone tap the riches of Wall Street's hottest and most rapidly changing sector.

This book describes an equity research approach which combines principles of value investing with domain specific expertise in the technology industry. The book also provides an overview of the financial services industry and the different types of conflicts of interest that drive market participants toward objectives that may not be aligned with those of the individual investor. The book describes an equity research process that I have followed throughout my career as a financial analyst, and shows that equity research is difficult not just for the technical skills involved but also due to behavioral issues that one has to deal with quite frequently when it comes to investing. Equity Research takes a lot of work - much more than an individual investor is likely to be able to commit given that her main profession is probably something other than investing. A central message of the book is for the individual investor to find an independent investment manager who she can trust to pursue an investment strategy that is aligned with her goals.