Computer Analysis
Computers have brought many refinements t the work of the investment analysts. I see tha one firm of brokers has produced a list of corn puter 'rankings' which may be defined as the percentage change in price that would be re quired—relative to the market—for the corn puter to judge that the share was correct! valued. I was interested to see that many brewer shares are in the top categories of cheapness They would have to rise by 15 per cent or I per cent to get into line with the marke Among the dear shares come MARKS AND SPEN CER and RANK ORGANISATION 'A,' which woul' have to fall by 21 per cent and 22 per cent respec tively to get into market line. But many broker will not agree with these computer rankings. Fo example, many investors regard Marks and Spen cer, to give a current dividend yield of 4.2 pc cent, as reasonably priced in view of its growt prospects. Another broker regards Rank 'A' a cheaply priced on an estimated price-earning ratio of 28.7 in view of the rapid growth 0 RANK XEROX profits, which now account for 6 per cent of Rank Organisation profits (agains 40 per cent a year ago). A computer which woul simply give us the number of brokers advisin, a 'sale' and the number advising a `buy' shmil be a boon to the investment commentator.
Previous page
