Computer Rehabilitation and Status Update
As mentioned in earlier postings, my postings have been diminished due to computer problems. At this point, the computer is back on line, but the investments analysis tools require reprogramming due to upgrade to Office 2007. At this point, the core file is back up and running. That file includes the discounted cash flow analysis, calculation of replication value and earnings power value, the Dupont disaggregation of ROA, the key ratios, Altman Z, and Piotroski. I was, in fact, up until 4 am programming it in VBA. Two other files remain — the one that compares intrinsic value over time with movement of the stock price and, more importantly, the graphs displaying the history of the financials and their components. Neither should be as long-winded an effort as the first, but, with computer programming, this is not guaranteed.
I should mention that Microsoft Office 2007 Excel is a downgrade from 2003. It is slow … laboriously slow. My 17-year-old son moves faster when it comes to performing assigned tasks. Not only is programming in VBA a royal pain, calculations using range names, VLookUp and HLookUp, If-Then statements, and other calculations (such as insert column) can take minutes. This is not a minor problem, from a quality perspective. The entire reason for Excel’s existence is to perform calculations. Why the company would release a product with degraded functionality is a mystery to this quality improvement professor. Its supporters note that Excel now accommodates an expanded spreadsheet (more than 2003’s 65000 rows, for example), but this was why God made Access and Oracle databases. 65000 rows was once considered sufficient for spreadsheet purposes. It still is, and, for those who might benefit from such an expansion, their numbers are small in comparison to the loss of efficiency and functionality.
In testing the first file, I have come across a stock that looks interesting — preliminarily. So, for those who may be needing a stock-ideas fix, take a look at Quality Systems, Inc. (NYSE: QSII). QSII produces software for the healthcare industry, has seen the stock price cut dramatically, and, on paper appears to have the strongest set of financials. The industry is out-of-favor (both, as a technical stock and given its link to healthcare), and I haven’t been able to scrub the financials as closely as I would like. But it is worth a closer a look. I should mention that I do not have a position in the stock at the moment (i.e., no dog in this fight).
In any event, with a little luck, I’ll be back on line with stock analysis soon — hopefully, by the end of this long weekend … perhaps, sooner.
