Security Analysis on Wall Street - A Comprehensive Guide to Today's Valuation Methods (Hardcover)

Advance praise for this groundbreaking look at Security Analysis on Wall Street

"Mr. Hooke does an admirable job of stripping away the wrapping paper to reveal the fundamentals of analyzing companies and their stocks and bonds that are traded in the public marketplace." —Samuel L. Hayes III Jacob H. Schiff Professor of Investment Banking Harvard University Graduate School of Business Administration

"Jeffrey Hooke has provided a comprehensive and readable explanation of the issues involved in determining company valuations. This book should become required reading for analysts and investment managers." —Steven W. Golann Director Mercury Asset Management International Ltd.

"One of the toughest issues facing an investment professional is valuation. Jeffrey Hooke in his book Security Analysis on Wall Street deals with this issue in a comprehensive manner by providing not only a framework to evaluate the dynamics that determine value, but also tools that can be put to practical use. I consider this book a serious contribution to the art of valuation." —George Konomos Investment Manager Cambridge Capital Fund, LP Praise for M & A: A practical Guide to Doing the Deal

"Jeffrey Hooke has done a fine job of explaining the 'ins and outs' of a very complex business. He knows what he's talking about." —John C. Whitehead former co-Chairman Goldman, Sachs & Co.

The principles of investing have always been simple: buy low, sell high. The investor who can find the right stocks to buy at the right time will reap the rewards, but the information needed to make these potentially lucrative decisions is often difficult to come by, then hard to decipher, and rely on.

This authoritative new book shows that rational, rigorous analysis is still the most successful way to evaluate securities. It picks up where Graham and Dodd's bestselling Security Analysis —for decades considered the definitive word on the subject —leaves off. Providing a practical, up-to-the-minute view, Security Analysis on Wall Street shows how the values of common stocks are really determined in today's marketplace.

Proper stock valuation is one of the most challenging tasks in finance, and it has been the subject of continual discussion and debate over the years. As Hooke points out, "Theories abound on the appropriate methodology for establishing valuation, ranging from the quasi-scientific discipline of the 'intrinsic value' believer to the emotional ravings of the anticipation investor. . . . The market price of any stock thus represents a jumble of contradictory expectations and hypotheses, influenced constantly by investors processing new data and evaluating changing circumstances."

Rising above the "jumble," security analysis dictates that the selection of specific stocks for purchase or sale should be based on a rational analysis of investment values. Applied over the long term, in a disciplined manner, this method can produce superior results. Security Analysis on Wall Street takes a revealing look at the complete security evaluation process and its complex inner workings, as well as the major valuation techniques currently being used by Wall Street professionals.

Beginning with an overview of the environment in which stocks are issued, researched, bought, and sold, Hooke examines the roles of the various players, the rules of the markets, and the activities surrounding initial public offerings. He then probes the intricacies of analyzing and reporting on securities with proven methods for evaluating the merits of a stock. This sophisticated yet straightforward system enables the investor to assess profitable firms, as well as marginal performers, leveraged buyouts, and corporate takeovers, and —most importantly —to break down different analyses and get the big answers: Is the security fairly valued, and if not, should it be a "buy" or a "sell"?

Incorporating dozens of real-world examples, and spotlighting special analysis cases —including cash flow stocks, unusual industries, and distressed securities —this comprehensive resource delivers all the answers to your questions about security analysis on Wall Street.