How will the winter and spring stock markets discount President Barack Obama?
At least, the stock cannot discount too much of an uncertain future.
Then sell once housing recovers, the stock-market discount disappears or land values jump.
Such plans allow employees to buy their company's stock at a discount of 5% to 15% off the market price on a specific day.
The cycle's bottom probably is under a year away, even six months, but it's still too early for the stock market to discount with a huge rally.
It was anything but coincidental that discount stock brokerages like Charles Schwab and Ameritrade made a beeline to the commercial web in its earliest days, circa the mid 1990s.
An investor commits to giving a company a certain amount of cash over 18 to 36 months in exchange for newly issued stock at a discount (typically 3% to 6%, more for very small outfits).
We believe, at present, the stock is trading at a discount to its fundamental valuation due to the negative sentiment surrounding the stock following the recent earnings release.
In a 2011 survey by the National Association of Stock Plan Professionals, 71% of tax-qualified plans offered a 15% discount off the stock price, down from 79% in 2007.
Instead of owning one, own index futures, which trade at a discount whenever stock yields are higher than short-term interest rates.
Secondaries can often present buying opportunities for bullish investors interested in purchasing shares, because the sudden extra supply of stock tends to require that the offering be priced at an attractive discount to where the stock had previously been trading before the offering announcement.
Specifically, Fidelity found in a recent survey, employers are either introducing or increasing the employee discount on company stock up to 15%.
Right now, the stock is trading at a discount to its major peers, mainly Apple (AAPL) and Google (GOOG).
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Each of these companies trades at a discount to the stock market's trailing 12-month price-earnings ratio of 15, yet is expected to increase its earnings per share over the next two years.
Even if not the Cupertino based company will likely hedge a significant amount of stock and that a bulk discount will ensure they can always have a cheaper bill of materials than any competitor using the alloy.
While Deutsche Bank didn't disclose the terms of the share sale, industry officials said the deal's structure would likely involve a small number of big institutional money managers picking up the shares at a small discount to the stock's current trading price.
Corl is confident the stock is at a 30% discount to net asset value.
That bet is safer for investors when the stock can be had at a discount to net worth.
There are still a myriad of techniques that can be used to discount the value of stock for transfer purposes.
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The block was priced at a 2.8% discount to where the stock was trading before news of the sale was announced.
Buy the fund and you are buying YPF even cheaper since the fund trades on the New York Stock Exchange at a 29% discount to net asset value.
He notes that the stock continues to trade at a discount to its peers, such as Kroger (KR) and Safeway (SWY) based on p-e ratios and price-to-EBITDA (earnings before interest, taxes, depreciation and amortization) multiples.
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In Watt's Latin America Equity fund, for example, you are getting shares of YPF, an integrated oil company in Argentina that trades at 6.5 times estimated cash flow (expected 1998 earnings plus depreciation). (The comparable ratio for Exxon is about twice that.) Buy the fund and you are buying YPF even cheaper, since the fund trades on the New York Stock Exchange at a 29% discount to net asset value.
Thus the stock is trading at a 23% discount, even after Blackley adds in his traditional 15% discount for holding companies.
Apple stock has been always traded at a discount compared with this fair value, but it did follow the trend in this chart.
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Academics put the long-term trend in corporate profit growth at no more than 4% per year, not the 7% needed for dividend discount models to justify current stock prices.
But given the way the stock has traded, buying on the little discount may be a better strategy than waiting for the big sale.
Their discount is off whatever the current stock price is--meaning they can turn a quick profit by selling the stock immediately, before taking possession of the new shares.
If the stock passed, I ran another valuation using a discount rate of 8% and a CAP (competitive advantage period) of 10 years.
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