Advances in Fundamental Analysis and Technical Analysis To order this title, and for more information, click here
By Ken Standfield, The International Intangible Management Standards Institute, Australia
Description This book asserts that intangibles create financial transactions, not vice versa. It offers distinct, reproducible methods of valuing
intangibles in intangible forms, with associated and meaningful financial values. It also presents new management frameworks in which
all forms of intangibles can be classified, measured, managed, and reported.
Audience
Financial Managers, students in MBA finance programs.
Contents PREFACE 2
DEDICATION 2
ACKNOWLEDGEMENTS 3
TERMS & DISCLAIMERS 3
CHAPTER 1: UPGRADING FUNDAMENTAL ANALYSIS 11
CHAPTER 2: COMPETITIVE
ADVANTAGE VALUATION 15
Stock Prices Measure Competitive Advantage 15
Understanding Price Fluctuations 15
Competitive Advantage Costs
16
Competitive Costs 17
Competitive Costs: Not Wage Costs 17
Benefiting from Flawed Valuation Approaches 19
Exploiting Flawed Management
Thinking 20
Hard vs. Soft Intangibles 20
Different Resource Types 21
Explaining resource levels 22
The Understood Importance of Intangibles
23
Robust Intangible Valuation Systems 23
Brand as an intangible 24
Robust Intangible Management Systems 26
15 Key-Issues Ignored 26
17 Problematic Valuation Issues 27
Issue #1: Strategy Based (intMgtOS?6001.I05) 27
Issue #2: Incorrect formation (intMgtOS?6001.I1)28
Issue #3: Comparability (intMgtOS?6001.I2) 28
Issue #4: Underlying Component Changes (intMgtOS?6001.I3) 28
Issue #5: Strategy Linked
(intMgtOS?6001.I4) 29
Issue #6: Limited Scope (intMgtOS?6001.I5) 29
Issue #7: Ownership Based (intMgtOS?6001.I6) 29
Issue #8: Wage Costs
as a Proxy (intMgtOS?6001.I7 29
Issue #9: Productivity not linked to Brand (intMgtOS?6001.I8) 30
Issue #10: Expense Productivity Ignored
(intMgtOS?6001.I9) 30
Issue #11: Revenue Potential Ignored (intMgtOS?6001.I10) 30
Issue #12: Employee Motivation Ignored (intMgtOS?6001.I11)
31
Issue #13: Daily Brand Value (intMgtOS?6001.I12) 32
Issue #14: Competitive Advantage Ignored (intMgtOS?6001.I13) 34
Issue #15: Daily
Competitive Advantage Valuation (intMgtOS?6001.I14) 35
Issue #16: Confusion Regarding the Term Intangible (intMgtOS?6001.I15) 35
Issue
#17: Linking Intangibles to Financial Performance (intMgtOS?6001.I16) 36
18 New Valuation Laws 37
Intangible Laws 40
Financial Performance
and Intangibles 42
Profit and Intangible Asset Capitalization 42
Intangible Economics and Profit. 43
Intangible Demand and Conventional
Demand 44
Conventional (Tangible) Demand Framework 45
Conventional (Tangible) Demand Framework after Soft Intangibles 46
Expenses and
Intangible Demand 46
Tangible Demand after a Reduction in Cost Quality 47
The Intangible Financial Statement Profit Equation 47
Intangible
Financial Statements 49
The Intangible Classification System 49
Intangible Assets 49
Intangible Liabilities 50
Intangible Capital 50
Intangible Revenue 50
Intangible Expenses 50
Intangible Profit 51
Intangible Loss 51
Intangible Financial Statements 51
Conclusion and
Summary 52
CHAPTER 3: FOUNDATIONS OF INTANGIBLE FINANCIAL STATEMENTS 53
Level 1 Time Analysis 53
Level 2 Time Analysis 54
Level 3 Time
Analysis 55
Nanotime Manufacturing 56
An Example 57
Nanotime Value Transactions 58
Pre-contractual performance 59
Contractual performance
60
Post-Contractual performance 62
Nanotime and Value 65
CHAPTER 4: BENCHMARKING INTANGIBLE PERFORMANCE 66
Intangible Finance Statements
66
Proposition 1 66
Optimal Employment Levels 67
Determining OEL 68
Changing Staffing Levels 68
Linking Revenue and Employees 68
Intangible
Finance & Intangible Assets 68
Intangible Transactions 70
Intangible Asset Quality 71
True Productivity 72
Quality Management Issues
73
Proposition 2: Intangible value – leading sentiment indicator 73
Proposition 3: Expenses only destroys value 75
Intangible Financial
Statements 75
CHAPTER 5: 21ST CENTURY FUNDAMENTAL ANALYSIS 78
The Accounting Crisis 78
The Role of Intangible Standards (intMgtOS?)
78
Accounting Problems 81
Why Accounting Problems Exist 83
Solving Fundamental Problems 84
Accounting or Intangible Management? 86
Applying
Intangible Standards (intMgtOS?) 87
Intangible Finance Asset Classes 89
Knowledge Asset Classifications 89
Relationship Asset Classifications
90
Organizational Asset Classifications 91
Four Approaches to Intangible Valuation 91
True & Fair Value Certification 92
Case Study:
Microsoft (Nasdaq: MSFT) 93
Step 1: intMgtOS? Physical Availability Report 93
Step 2: intMgtOS? Daily Time Report 96
Step 3: intMgtOS?
Real Revenue Report 97
Step 4: intMgtOS? Apportionment Statement 100
Artificial Employment 102
Apportionment Statement: intMgtOS?5001.iR4
105
Interpreting intMgtOS?5001.iR4 108
Step 5: intMgtOS? Intangible Balance Sheet 108
Step 6: intMgtOS? Nanotime Productivity 112
Determining
Nanotime Productivity 112
Step 7: intMgtOS? Income Statement 115
Interpreting the Intangible Income Statement 119
Gross iRevenue Efficiency
119
Intangible Expense Analysis 119
Organizational Inefficiencies 120
Knowledge Inefficiencies 120
Relationship Inefficiencies 120
Structural
Inefficiencies 120
A Note on the Size of Potential Productivity Savings 121
Productivity Potential 121
Attainable Productivity 122
Sustainable
Competitive Advantage Levels 122
Social Capital Effectiveness 123
Human Capital Effectiveness 124
Natural Revenue Growth Rates 124
Step
8: intMgtOS? Sustainability Statement (intMgtOS?5003.iR8) 125
Step 9: intMgtOS? Artificial Employment Statement (intMgtOS?5003.iR9)
126
Step 10: intMgtOS? ROI Statement (intMgtOS?5003.iR10) 126
Step 11: intMgtOS? Daily Value Statement (intMgtOS?5003.iR11) 127
Step
12: intMgtOS? Market Value Statement (intMgtOS?5003.iR12) 129
CHAPTER 6: INTMGTOS? AND OTHER STANDARDS 131
intMgtOS? Standards 131
Intangible Standards 132
ISO? Standards 133
ISO9000 (QMS) and ISO14000 (EMS) 134
ISO9000 134
ISO Certification 135
Conformity Assessment
135
ISO Registration 136
ISO Accreditation 136
Comparing ISO? and intMgtOS? 136
ISO? Costs 137
intMgtOS? Enterprise Certification 137
intMgtOS? Strategic Productivity 138
intMgtOS? Competitive Advantage 138
intMgtOS? Certification 139
intMgtOS? Membership 142
intMgtOS?
Professional Membership 142
intMgtOS? Corporate Membership 143
intMgtOS? Client Membership 144
ANSI? Standards 145
ANSI? Costs 146
ANSI?
Benefits 146
CHAPTER 7: UPGRADING TECHNICAL ANALYSIS 148
Value Types 148
Positive Intangible Value 149
Negative Intangible Value 151
Returns & Risk 154
CHAPTER 8: INTANGIBLE ANALYSIS OF SECTORS AND INDUSTRIES 156
SECTOR ANALYSIS 156
Analyzing Large Caps 158
Highest
Absolute Return 159
Highest Relative Return 159
Lowest Relative Return 159
Analyzing Medium Caps 160
Highest Relative Return 161
Lowest
Relative Return 161
Comparison with Strongest Large Cap Results 161
Comparison with Weakest Large Cap Results 162
Analyzing Small Caps
162
Highest Relative Return 163
Lowest Relative Return 163
Comparison with Strongest Large Cap Results 163
Comparison with Weakest Large
Cap Results 164
Analyzing Micro Caps 165
Strongest Relative Returns 166
Weakest Relative Returns 166
Intangible Analysis of the Market
166
The Role of -IV 166
The Role of +IV 167
+IV and ?IV For Large Caps 167
intMgtOS? Value Factors 168
By Sector: ?IV for Large Caps
168
By Industry: ?IV% for Large Caps 170
Large Cap Industry Returns 170
Top 10 returns for value creating large cap firms (+IV) 170
Bottom 10 returns for value creating large cap firms (+IV) 171
Top 10 returns for value destroying large cap firms (-IV) 171
Bottom 10
returns for value destroying large cap firms (-IV) 172
Explaining the total industry table: 172
By Industry: ?IV% for Medium Caps 179
Top 10 Medium Cap +IV performance 180
Bottom 10 Medium Cap performance 180
Top 10 Medium Cap -IV performance 181
Bottom 10 Medium Cap
-IV performance 181
By Industry: ?IV% for Small Caps 187
Top 10 Small Cap +IV performance 188
Bottom 10 Small Cap performance 189
Top
10 Small Cap -IV performance 189
Bottom 10 Small Cap -IV performance 190
By Industry: ?IV% for Micro Caps 195
Top 10 Micro Cap +IV performance
196
Bottom 10 Micro Cap performance 196
Top 10 Micro Cap -IV performance 197
Bottom 10 Micro Cap -IV performance 198
Conclusion 203
CHAPTER
9: THE INTMGTOS? ECONOMY STATEMENT 205
What the Statement Measures 205
intMgtOS?6001.D110: Gross Time Capital (GTC) 205
intMgtOS?6001.D120:
Rev:MV Gearing 206
intMgtOS?6001.D130: BV:MV Gearing 208
intMgtOS?6001.D140 – MV:Emp 210
intMgtOS?6001.D160 – opInc% 211
intMgtOS?6001.D170 – IAT% 211
Standfield Factor 212
intMgtOS?6001.D180 – SSP 212
intMgtOS?6001.D185 – SBV/S 213
intMgtOS?6001.D190 – SIV/S 213
intMgtOS?6001.D190 – Standfield factor 214
CHAPTER 10: THE INTMGTOS? STANDFIELD STATEMENT 215
The IntMgtOS? Standfield Statement Analysis 218
Stage 1 Analysis
218
Stage 2 Analysis 219
Stage 3 Analysis 219
Stage 4 Analysis 219
Stage 5 Analysis 219
Standfield Exchange Analysis 220
NASDAQ Analysis
220
AMEX Analysis 223
OTC Analysis 226
NYSE Analysis 229
Conclusion 232
CHAPTER 11: THE INTMGTOS? SMART MONEY STATEMENT 234
Why Smart
Money? 234
Specific Exchange Smart Money Statements 235
NASDAQ Analysis 240
AMEX Analysis 244
Conclusions 246
CHAPTER 12: PATTERN RETURN
ANALYSIS 247
L1 Pattern Based Analysis 247
Capital Creation (CC) Analysis 247
Negative Share Price Movements 248
Positive Share Price
Movements 248
Large Cap Analysis 249
Large Cap +IV Pattern Return Analysis 250
Measuring Absolute Returns 253
By Sector 256
Conclusions
for +IV Large Caps 258
Large Cap -IV Pattern Return Analysis 259
Relative Pattern Return (?IV) Analysis 259
Average Return on Investment
(?IV) Analysis 260
Relative Return on Sector Investment (?IV) Analysis 261
Absolute Return on Sector Investment (?IV) Analysis 262
Conclusions
262
Medium Cap Analysis 263
Relative Pattern Return (?IV) Analysis 263
Average Return on Investment (?IV) Analysis 264
Relative Return
on Sector Investment (?IV) Analysis 266
Absolute Return on Sector Investment (?IV) Analysis 267
Conclusions 268
Small Cap Analysis 268
+IV & ?IV Ratios 269
+IV Firm % 269
-IV Firm % 269
NA Firm % 269
+IV to ?IV Ratio 269
+IV to NA Ratio 270
Sector Return on Investment
Analysis 270
Return by Sector Analysis 272
Wealth Creating (+IV) Small Caps 272
Wealth Destroying (-IV) Small Caps 273
Micro Cap Analysis
274
+IV & ?IV Ratios 274
+IV Firm % 275
-IV Firm % 275
NA Firm % 275
+IV to ?IV Ratio 275
+IV to NA Ratio 275
Sector Return on Investment
Analysis 276
Return by Sector Analysis 277
Wealth Creating (+IV) Micro Caps 278
Wealth Destroying (-IV) Micro Caps 278
Summary 279
+IV
Summary 280
-IV Summary 282
Cross Sectional IV Analysis 285
IV Market Composition Indicators 285
+IV Firm % 286
-IV Firm % 286
NA Firm
% 286
IV Relative Performance Indicators 286
+IV to ?IV Ratio 287
+IV to NA Ratio 287
-IV to NA Ratio 287
IV Return Composition Indicators
288
+IV to -IV Invest Ratio 288
+IV to -IV Return Ratio 289
Return Velocity 289
+IV to -IV Profit Ratio 290
CHAPTER 13: CONCLUSION 291
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