Scripting Studies on thinkorswim | 5-7-19

Scripting Studies on thinkorswim | 5-7-19

Show Video

Hello. Investors, let's take a deep breath and look at some of the uses for some of the things that we've done. Well. Ministers do want to welcome you here today for our scripting, studies, on thinkorswim, in, previous, sessions, we've done custom, studies, we've done custom, labels we've done custom columns we've done a lot of things I'd, like to do today here is just take a step back a little bit here and look, at look a little bit more of the application. Or the uses of some of the different things that we've done here in, order to accomplish that what we'll do is we'll, look at, if. You fact, let me just pull over here for just a second, so we can pull up a chart here through, here today is we'll look at the p/e ratio, we'll look at the dividend, yield look, at the payout ratio, we'll start off with these three right here we'll look at not so much the calculation. But actually. How investors, use these things okay, with regards, to our trading and, we want to look at that my, goal, here today investors. Is that not. Only will we we've already talked about these those of you that are new then then then you may be looking at these for the first time my goal here today is everyone, to understand, not only the construction, of the things rippling behind here but some of the practical, application. Of these, areas, when you integrate them with the overall tools, that you have here on the thinkorswim website, in order to do that we'll just take a look at each one of these we'll talk about we'll. Look at it from on a stock by stock basis. We'll look at it from, from. From a sector, standpoint, as well so. That will be our agenda, and looking at it that way now given time we, may also come down here and look at earnings trans, along, with along with yield historical, splits maybe some custom columns, as well but, primarily our agenda here will be again, just to discuss p/e ratios, dividend yields payout, ratios, and their practical, use with, regards, to investing. But before we get too far along here investors let's go ahead and, run through our disclosures, here, and a, way of disclosures just to reminder, investors, that. That. Our powerpoints. Locked up here a little bit let's see if we can get beyond that here, there. We go web, disclosures just reminder, investors, that. Transaction. Cost Commission's and other fees are important factors it should be considered when evaluating, any, trade. Also. In. Order to demonstrate the functionality of the platform, we, need use actual symbols our TD Ameritrade does not make recommendations. Or dirt or determine. The, suitability of any security strategy, or course of action for, you through your use of our trading tools any, investment, decision you make in your self-directed account, is, solely your responsibility, that. Paper money application. Software that we use here is for educational, purposes only successful. Virtual trading during one time period does not guarantee. Successful. Investing, of actual funds during a later time period as market conditions do change continuously. Of, course we know investors of past performance of any security or strategy, does, not guarantee, of, future results, and. While, this webcast does that does discuss, technical, analysis, other approaches, including, fundamental, analysis, may, assert, very, different views let's. Go ahead then investors, will pull up the thinkorswim. Website, here for a second here let's just take a look at the market here kind of an interesting day here I was looking at this before, I came in here it looks like the markets sold off in a big way over. The course today but it does look like if we look at today's candle, we did have a little bit of a pairing. Of those losses, here, possibly. Going into the close here I think it may have paired off a little bit and then actually given up a little bit going in the close but at least we finished, off of, the lows here today if we look at this candlestick, right here this, is somewhat. Somewhat. Of a a hammer, light candlestick, I say somewhat of a hammer light candlestick, because, we do have this lower shadow here but when you're looking for a hammer you like that lower shadow to, be twice the length of the body here and we don't actually have that right here so now, from a technical analysis, standpoint we could see things, continue.

To Move to the downside here, but, for just a second let's go run let's come over here and look at some stocks here and. Why don't we start off here with health care well just what I have here is I have a list of the S&P 500. Let's. Actually use some of the custom columns we've done here in the custom column I want to pull up here is going. To be yield, so let's pull up now. Actually, kind, of pulling this our session, let's let's start off here with p/e ratios, okay, and we'll, do a. Short. Man over here we'll sort, our, custom column, here that is looking at p/e ratios, so so, we, don't have something that will pull up and show you the p/e ratio, on a chart okay but. We do have a custom, column here however we have, as part of our classes. In here we've developed, a custom, label here that will show you the p/e ratios only p/e ratios, may, not match exactly because. The calculations, are going to be a little bit different I. Would, tend to have a little bit more confidence, in the p/e ratio, that we have over here because we actually go back and count the earnings let's, sort over here, and we, looks like we have K I M this is a real, estate in the real estate sector let's pull that up and. We'll. Give it a second here to come up this this is gonna be a read but that's okay. Hey. And, you can see yeah there is quite a difference here right and again I'd have a little maybe a little bit more confidence, in in. What we have over here versus, what we have over here let's look to see where we have a little bit more, congruence. With. Regards. To and to simplify things I'm going to change our chart over here to. A one-year, chart rather than a five-year. Chart. And. There, we have right there and we're actually not not going to check the numbers I would just say that I tend to leave a little bit more towards. Our programming, here rather than what's coming up over here in the column, just because. The. The, addition but why, don't we go ahead and check it out just for fun though we could be off here a little bit so it looks like Kim's, trading in 1796. And we, want to look at earnings over the past four quarters so, we got 37, cents here we'll take. That 37. We'll add to that 35, Plus. 35. Led, to that 34. +34. And, then, we'll add to that 39, so those are the that's, the trailing 12-month, earnings, that we have here on the chart so. And. That one over here is 39, it looks like plus. 39. Equals. We'll, divide that by a hundred so, that we got a dollars, and cents one here so we got a dollar 45, so. If we take. 1796. And divide that by a dollar. 45. Looks. Like we're at twelve point three eight and that's pretty much what our numbers are saying I'm not sure exactly why this one's a little bit off in fact I'm gonna pull over a different price earnings, here maybe, that's a percent. Let's. Check that out if we divide that twelve there by seventeen. Point. Nine six, is that going to give us a percent, of sixty-eight now it's thirty eight yeah so still is a little bit different let's, let's let's bring up a different I believe. You have more than one choice here with regards, to price earnings, as I hate to waste valuable time. Doing, this investors. But. That. Is. Let's. See we can do here though let's, see. Price. And. We'll come over here and see we've got here. Price. Earnings ratio it looks like that's the only one I'm seeing here will come down here a little bit further that, could just be a one-off Oh as well you know when you when you do sort things like we did and you're looking at the extreme side of things. Price. Earnings ratio, then sometimes you do get some of these one off so we'll just come down here after some. Of these super, high winds come down here a little bit more middle-of-the-road. And. Why don't we look at LMT here for an example we got seventeen, point two here, and, we got sixteen point nine one so these are relatively.

Close Right here so, how, do you use a p/e ratio, with regards to investing. Well. The p/e ratio, is telling us how, much we're paying for the earnings per share for a company. Now. A low. P/e ratio, means that we're paying less for the earnings per share at a height ratio, means we're paying more for those earnings per share is. One necessarily. Better than the other not, necessarily. You. Know when you think about it if you have a very, low, p/e ratio, if we come down here to the bottom right here. All. The way down here, where we've got, these. All sorted, of. It. Looks like those are the highest, but. This would be that negative would be the lowest and let, me just sort these once more and. There's. Our negatives, and. There's our. Let's. Go that way we have the negatives up the top no these are just kind of goofy numbers because theoretically those companies would be losing money but. We'll. Come down here just before we get negative, up here. Right. In here so we have mu, Information, Technology this. Seven appear a so let's come down let's come off the extremes here a little bit we, will come down here to Nu e they'll believe that's new core mining with a p/e ratio of 7.2. We'll. Pull that up and it's right in the ballpark here at seven seven point two so. It's, seven point two that's. Very low so. We're paying less for the earnings per share so does that mean that this is a better stock rather, than buying a p/e ratio, that's up of the 20s or so not necessarily, not. Necessarily one. Of the things to keep in mind are the p/e ratio is a p/e ratio, is an indication, of. Expected. Growth in the earnings per share, if. You have a p/e ratio, of seven, then. From a theoretical, perspective investors. That are buying that stock they, don't have an expectation for, those earnings per share to, grow at a rapid, rate if, they did have that expectation, for earnings per share to grow at a relatively, rapid, rapid, rate then, they'd be willing to pay more for the stock than seven times earnings. I'm. Looking as P ratios seven seven, oh here let's come in here and look at what analysts, are saying about this stock it does look like we have some outperforms, here and we have some reduces. Over here, now. Analysts, are generally, looking at things from a funnel, perspective, so this isn't too unusual, but, if you're an aggressive investor. You may very well, lean, a little bit more towards an invest towards, the stock that has a higher p/e ratio. So. If we move over here and let's get p/e ratio, up here in, the 20s, I want to just jot down new core here because we do want to come back to that. New. Core, and then let's come up here where the p/e ratio is a little bit higher how about the 20s, or 30s. If. We come over here to let's. Go high 20s, low 30s somewhere. Over here so. Here we have it looks like maybe this is Baxter, Medical I'm not sure that's who it is but let's click on and find out yeah that's Baxter, international, this. Has a p/e ratio, of 30 so. The investors that are buying this Locker paint for those earnings per share 30, times over is. This a bad, deal not, necessarily, because investors, could be assuming, that these, earnings for sure gonna grow rapidly and the, p/e ratio could go even higher from here let's. Check to see what analysts are saying about this we sort of had a split decision on the other one on this one notice, that the p/e ratio, is three. Times higher than we had over here on new core but, on this one we don't have anybody, over here on the left-hand side which. Tends to be reduced one, or two stars underperform, sell and avoid all. The Yama's here either in the middle or there over here on the outperforming, buy side so. We do want to keep those things in mind now another thing and, this would be true with regards, to all of our labels here. What. What some investors will do is they'll look I'm just gonna write down Baxter, here as well I'm going to note Baxter. Is. It p/e. Ratios, and multiples, they will be different, in different sectors, and industry, groups, now. This is a health care company but I believe these guys are, not only health care but they're in the technology. Area of the healthcare industry.

I'll. Double check that though and come up here to analyze we come down here and read this little paragraph here we won't go through the whole paragraph, but the company operates two hospital. Products, notice it's hospital products, and rental, if, you're, creating, a product that usually, involves. Technology. Business. Manufacture. Sterile, intravenous. IV, Solutions, Administration premix, drugs drug, reconstruction, system prefilled, buyer syringes. And injectable, drugs IV nutrition products. This, is in that this isn't a technology, area so. If it's seen that these folks are are, doing well with regards to staying in the forefront of technology and healthcare then you'd have some analyst, that'll be looking at this a little more of a positive perspective. Now. Notice. That they're in the healthcare industry. Which. You can do in looking at price, multiples, in the light you, can look at other stocks, and I let me back up from that a little bit and say notice that this is the healthcare sector. Which. You can do here is say well how, what. Are what are other healthcare, stocks. What. Are they currently selling, at in relationship, to their earnings per share we. Could do the same thing for what are the dividend, yields on the other stocks what are the payout ratios, on other stocks and the likes we could do we, could look at things relative, to other members, of their sector or their industry, group, and. To do that with this listing I just have a listing here the S&P 500 so, this is going to be a listing of all of the companies that are in healthcare it'll be a listing of what we'll see as we'll look, at the companies, that are in healthcare that are part of the S&P 500. Some of them you know the larger, cap more, well known companies. But. When you have this sector common this sector column is not a custom, column this is a column that you add, customize. And over here you could type in its, are typing in sector, and there's your sector right there I believe, we also have industry. Groups in here as well. Here's. An industry, group in fact I'm gonna go ahead and move industry, group over here on the fly will move. Industry, group over here so. Now we have sector, and industry, group and there's our p/e ratio. We'll. Say okay. Yeah. And where's, our little sector, guy there we're not quite seeing it or we can having a hard time squeezing, it in there's our industry, group okay, let's. Give ourselves a little bit more room here for our analysis. Investors. And, come. Over here and we're highlighting p/e ratios let's go ahead and and and sort. By sector, so we're gonna sort. This by sector, and we can come down here then and find health care. Health. Care health, care maybe we need to come up here to find health care so here's here's all our health care folks. Now. Which which health care we're looking for we're looking for Baxter. Underneath. Health care so. Here's. Baxter, health care so this is health care and equipment, so it's these folks right here. So. How is Baxter's. Price. Multiple. In comparison. To other companies, that are in the industry group well, they're at a thirty which. Is lower than var. 34, about the same as bsx, lower than Co oh I'm, not sure who they are, lower. Than a line. Okay. Higher. Than x-ray, but x-rays got a negative P which means one of these earnings per share is, likely a negative, number in other words they lost money. And. Our equipment folks, here health equipment. And supplies we just want to go here to supplies yes so actually that that's, as far as we want to go so, looking at the price multiples, here it's. Yeah it, is on the low end, here. It's, not quite the lowest we also have bsx, so be ax and b sx they're selling it the two lowest multiples, so one way you, could use this is you could spot your p/e ratio, here maybe, it's high maybe it's low you could compare, it compared, to some of the other companies that are in the same sector, also, in the same industry grew.

We. Have Baxter, here let's come down here and take a look at B SX here cos they're at about the same here look, at B SX, and, there's, price well they actually have a little bit of a lower p/e ratio, when we're using a more exact, calculation. So that would be something to keep in mind what. Our analysts suggesting, though with regards to BS X in relationship, to be, ax come. Up here to the analyze tab and we can see that well they, got a couple of dingers over here so. If we're looking what analysts, are saying if we played the part of the investors a little bit more driven by what analysts are saying we, may want to come over here and feel a little bit more comfortable comfortable. Here with BA, X. So. Again, investors, and, looking, at these you, know generally, speaking there are benchmarks. That that, a fair number of vessels will look in relationship, to p/e ratios. You. Know some, investors, not necessarily investor but some investors, get a little bit nervous when those PE ratios, get above 30, and. 40. Or 50 you're hired they get a little bit nervous but then if you look at the underlying sectors, to see where they're at look at the industry groups in relationship, to that sector that industry, group that p/e ratio, may not be that far out of line given. That sector, and given that industry, group and why, would a sector an industry group in general. Be. Up above 30 I mean, looks, like all the ones in the healthcare and equipment category, above 30 are. Are. Above 30 in the sp500 except, one and that's, x-ray here they have a negative, and. I, would think that maybe over here we have a loss or maybe that's a miscalculation we, know well this, is one of those little one offs that occur every one so this is a negative we have a positive, here and as I mentioned earlier, I'd. Have a little bit more confidence, with regards to our calculation. Here, because, sometimes you do have some one offs that come in here through this column right here. Take, a look at that and say well that's 26. Now that's, as well wait a minute this is lower than those other guys if we take it off the chart here what. Are analysts, saying over here well come we're going to take a look at analysts, again. We're at the midpoint, and or, better right here so in looking a little bit more detail, we. May want to look and this is dense supply, manufacturing. Professional, dental products and technology, so this again is technology. This is dental products, thinking. About how much I've paid my dentist, over the last year or so I can understand. Some. Of the reasoning behind behind this. Semester. That that, would be a way so you could do the same thing here with regards to dividend yield if we wanted to come in here and let's, collapse to. Get a little bit more room here I'll, just. Let. Me bring the sector down over here, let's, collapse our price earnings ratio here. Yeah. Let's look at our Yale we'll see if our yield numbers are where. They stand up so let's let's sort by yield here for a second. Sort. By yield well. Some. Of these have not available. Not sure. Those. Could participate companies, in the sp500, aren't currently paying a dividend we, come over here and. On the high end let's see how we do on the high end here with regards to matching up with our calculation, of water here with regards David Daniel we got CTL. Dividend. Yield of eight point seven six it looks like we're right on target here. With. This column, and what we're seeing right here. So. We, may look at diversified communication. So this is in this. Is in the communication. Services. And this, is diversified, communications. They, pay they, have a dividend, yield of eight point seven six well, not too surprising, look how far the price of stocks move down I don't, know that we need to look in a lot of sectors when we see something that's sold off like that has, that high yield because of a sell-off and. You. Know just looking at it from a technical standpoint, a lot investors may be a little bit nervous about this but as this entire sector, sold, off like like Centrelink, has here I don't know the answer to that but. We can take a look we. Can come in here and we can sort by sector. Now communication. Services, let's sort by sector. We're. Looking at CTL, I'm just going to drop that down here. CTL. And. What. Do we want to look for here wasn't that.

Communication. Services, or something along those lines. Information. Here we are communication. Services so it's diversified. We only have CTL, we have T and we have looks like that's AT&T. And Verizon little bit. Let's. Come over here and just see what that what. That group is. Have. Telecommunications. We have CenturyLink. So, we have three, primary players, right here so not a lot of folks in this particular industry, group if we, look at T. T's. Kind of been been ground a little bit but not as dreadful of CTL. And. Were they at their. Yield is also relatively, high at six point six eight if we look at Verizon, their. Yield isn't about a four point two six but it's understandable, because their price is moving up so, when you see a high yield like this it doesn't automatically, mean oh let's. Go at the highest yield and also that p/e ratio, that p/e ratio is relatively, low it, could mean the company is having some difficulty, we, come over here and check the analyze tab and see we got over here if. You look at what analysts, are currently saying they're not particularly, positive on this, stock if you're looking what's going on in here if we compare that to tea a little. Bit more possible, we're here but still some underperforms, here if we look at Verizon, again. A couple of one-offs here but a little bit more positivity, in here so, when your so when we're looking at these labels on our charts again investors. We. It's, beneficial, to look at the number and kind of get an idea because over time when you're looking a lot of stocks you'll, start to kind of gravitate, towards, a particular. Yield, or a particular p/e a particular payout, ratio, and as, far as actually, applying these things in looking at them it's usually beneficial, to see okay this these folks are paying out 50%. Right. Here on our payout ratio they're paying out 50% of their of their earnings in in. In, in dividends. And, which means they're investing. 50%, with regards to future growth so. So. That's so, you always have that that kind of a trade-off, sometimes. The way investors, will look at it is the, lower the payout ratio, is the more they're investing, for the future and, the, higher the p/e ratio, should be because of the expectation. Of future earnings, that, would be a way to correlate, these two look at the correlation. Between the. Payout ratio, and what the p/e ratio, is and the. Lower the payout ratio, is what some investors, will look at is if, the payout ratio, is lower than their expectations. That, want the p/e ratio, to be higher than. Their expectations. Also with. Some consideration. For the yield right here so, paying out 50, and a p/e ratio, here of 11, let's, compare that to to. AT&T, here, they're, paying out 57. And a p/e ratio, of 8 so that kind of goes along with that, thinking, that the. Lower the p/e ratio, the higher the p/e, here. Our payout ratio, is higher than Verizon. And. Our, p/e, is lower, than Verizon. So. Again. Compare. And contrast particularly. Looking at sectors, and looking at individual, industry, we're looking at this all, right investors, hey we're pretty much out of time here today we, weren't able to get down here to earnings trend we weren't able to get here to historical, split but let me ask you to. Do something here if you if you if you could and that is over, in the chat window, I've. Sent you a survey, and, these. Surveys are very beneficial to, us and helping us to get an understanding of, how. How, we're currently doing and how we can improve this. Session, was about, reviewing. And looking at more the application. Aspect. With regards to some of the custom scripts we've done.

So. When you look at that survey, and I and I'll go out and take a look at that survey depending. On how that survey. Is filled out and there's only four questions, there's only four questions depending. On how that survey is filled out that, will have an impact over. Whether or not I'm looking at this and whether a nice a you know what maybe. Perhaps. Every, every. Five. Or six or maybe six to ten sessions where we do some of this new stuff we, should take a session, just back up and say okay we've, talked about these things let's do a little bit of a deeper dive and talk about their practical, application, so if you take a moment in and, respond, to that survey that will help me get a better understanding. Of how we're doing and how to move forward with regards, to the future, all. Right, investors. Okay. How. Long is a PE being showed so, the PE ratio ravi. Epi. Ratio looks at the current price divided. By the earnings per share over, the last over the trailing 12 months, it's, not perfect, you know these these these things don't always come out perfect but it does a relatively, good job but that's that's, the standard way a calculation. Of PE is done current. Price divided. By the earnings per share with the trailing 12 months some investors, will on occasion use, what's called a forward-looking p/e ratio, where. They look at the current. Earnings, per share they'll, multiply, that by four and divided by the current price but the more customary, way is the, current price divided, by the trailing, 12 months of earnings per share, all. Right investors, so coming, up after our session here today we, have. Michael. Fairborn doing value investing, finding, stocks on sales so. So keep, that in mind also, we, do have sessions with regards, to fundamental. Analysis, and them and Mike can give you a heads up with regards to some of those sessions. As well on, the. If, you come up here and click on education in, fact and, we'll. See if this populates, for us hopefully it will we'll, give it just a second, maybe. It's not going to I have had some difficulty, in this room that does creep up and it, looks like maybe we're gonna have that a little bit of a difficulty, here but, with. Regards, to. To. Looking at add value, in those types of things I think you know Mike does a good job James, Boyd if you look in the in the webcast area he does a good job as well and looking at some of these value, areas okay all. Right investors, let's go ahead and wrap things up here then for today, and. To, do that just. Reminder, investors, that we do use the paper money software, application, which is for educational, purposes only. Any. Success, we may have in that does not guarantee success with, regards, to going forward, also, in order demonstrate the function either platform we need use actual symbols however TD Ameritrade does not make recommendation.

To Or determine the suitability of any security strategy, or course of action for you. Through, your use of our trading tools any, investment decision you make in your self-directed, account, is, solely. Your responsibility. Everybody. I hope you have a, great. Great. Week best of success in your investing. Yeah. And we'll catch you later bye everybody thanks, again for joining me and I'll be back here next week we'll see ya bye.

2019-05-15 19:42

Show Video

Other news