SPYR, Inc. (OTCPK:SPYR) vs. Eastmain Resources Inc. (TSX:ER): How are these stocks valued?

Checking in on some valuation rankings, SPYR, Inc. (OTCPK:SPYR) has a Value Composite score of 98. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 96. 

In taking a look at some other notable technicals, SPYR, Inc. (OTCPK:SPYR)’s ROIC is -21.637850. The ROIC 5 year average is -0.695573 and the ROIC Quality ratio is -0.923635. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

Once the individual investor has done all the fundamental homework and found a few stocks that they think are poised to be future winners, they may want to figure out when to best get into the market. Many investors will turn towards technical analysis to accomplish this. Technical analysis can help identify entry and exit points by studying price trends and movements over time. Some technical indicators are very complex and others are very simple. One goal of focusing on technical indicators is to help make confusing price information easier to interpret and understand. Many investors will find signals that they like to follow, but focusing on just one indicator may not provide the full picture of what is really going on. Many investors will combine technical indicators to help round out the spectrum. Although technical analysis can be a very useful tool for the investor, it is important to remember that stock prices are inherently unpredictable. Even the most seasoned investors may have to adjust their charts occasionally if trades are not working out as planned.

The Q.i. Value of SPYR, Inc. (OTCPK:SPYR) is 50.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The average FCF of a company is determined by looking at the cash generated by operations of the company.  The Free Cash Flow Yield 5 Year Average of SPYR, Inc. (OTCPK:SPYR) is -0.042748. 

Shareholder Yield
We also note that SPYR, Inc. (OTCPK:SPYR) has a Shareholder Yield of -0.009013 and a Shareholder Yield (Mebane Faber) of -0.02908. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

MF Rank
SPYR, Inc. (OTCPK:SPYR) has a current MF Rank of 16653. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

PI
We can now take aquick look at some historical stock price index data. SPYR, Inc. (OTCPK:SPYR) presently has a 10 month price index of 0.43956. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period.

A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.80000, the 24 month is 0.55402, and the 36 month is 0.90909. Narrowing in a bit closer, the 5 month price index is 0.29412, the 3 month is 0.34483, and the 1 month is currently 0.42562.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The Value Composite score of Eastmain Resources Inc. (TSX:ER) is 61.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Eastmain Resources Inc. (TSX:ER) is 70.

Technicals

Investors may be trying to figure out how much risk they are able to handle with their current stock holdings. Taking on too much risk can put unnecessary weight on the shoulders of even the sturdiest investors. On the flip side, investors who play it too safe may be shaking their heads and wondering what might have been. Finding that delicate risk balance can turn out to be the difference between sinking and swimming in the equity markets. It is highly important for investors to understand exactly what risks they are taking when buying and selling stocks. Knowing these risks may help avoid disaster down the line. Once the risk is calculated, investors should have an easier go at narrowing in on finding the right stocks to add to the portfolio. 

In taking a look at some other notable technicals, Eastmain Resources Inc. (TSX:ER)’s ROIC is -0.065003. The ROIC 5 year average is -0.062455 and the ROIC Quality ratio is 1.888637. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

We also note that Eastmain Resources Inc. (TSX:ER) has a Shareholder Yield of -0.309961 and a Shareholder Yield (Mebane Faber) of -0.10526. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Eastmain Resources Inc. (TSX:ER) has a current MF Rank of 12204. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

We can now take a quick look at some historical stock price index data. Eastmain Resources Inc. (TSX:ER) presently has a 10 month price index of 0.37209. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.40000, the 24 month is 0.91429, and the 36 month is 0.83117. Narrowing in a bit closer, the 5 month price index is 0.67368, the 3 month is 0.76190, and the 1 month is currently 1.03226.

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements.  The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth.  The C-Score of Eastmain Resources Inc. (TSX:ER) is -1.00000.  The score ranges on a scale of -1 to 6.  If the score is -1, then there is not enough information to determine the C-Score.  If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

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