Wesley R. Gray, Ph.D.

Almost a year ago we posted about a very interesting paper in the top-tier academic finance literature: http://turnkeyanalyst.com/2011/02/hot-off-the-jfe-press-maxing-out-your-returns/ The basic concept behind the trading strategy is that stocks that act like lotteries tend to be poor performers because people overpay for lottery bets. Here is a quick recap of the strategy: Identify a proxy for “lottery stocks” (in this case, ...

On December 21, the Turnkey Analyst had an excellent post on Google: http://turnkeyanalyst.com/2011/12/turnkey-research-note-google-inc-nmsgoog/ Here’s a quote from the analysis: Recently, however, over the past year, the company has shown lower asset efficiency, with lower asset turnover and a declining return on assets.  These factors combined with a rapidly growing asset base, might suggest an area for further analytical review in ...

I was stunned last year when MF Global, a major commodity futures and derivatives broker, declared bankruptcy.  At the time, I had an account at the firm, and I wondered how I was going to manage a transfer of my assets to a new brokerage.  I wasn’t too worried about my capital though; I had a rough understanding that Wall ...

Smart Money decided to run a quick article on our paper, “Analyzing Valuation Measures: A Performance Horse-Race Over the Past 40 Years.” http://www.smartmoney.com/invest/stocks/ugly-acronym-handsome-stock-returns-1326984524789/ Cool.

http://healthyhungryhappy.com/ This is a bit of shameless promotion, but I like to support entrepreneurs–they make the world go round and have the courage to “get in the ring.” It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to ...