F.A.S.T. Graphs™ founded by Charles (Chuck) Carnevale. The F.A.S.T. Graphs™ tool takes all the hours of manual graphing of business fundamentals and reduces it to seconds, giving you critical information in an instant. This charting tool has been used by Chuck and his family for a ...
more F.A.S.T. Graphs™ founded by Charles (Chuck) Carnevale. The F.A.S.T. Graphs™ tool takes all the hours of manual graphing of business fundamentals and reduces it to seconds, giving you critical information in an instant. This charting tool has been used by Chuck and his family for a number of years, and they decided to create an online forum to allow every investor the opportunity to use this unique tool.
What can F.A.S.T. Graphs™ do for you and your investments? Warren Buffett, the greatest capital allocator of all time, says; "There are only two things an investor needs to know; how to value a company and how to think about stock prices." With the F.A.S.T. Graphs™ tool at your disposal, you will be able to do both those tasks. F.A.S.T. Graphs™ is the first step in every stock research project and should be your first step too. Our graphs give all the company fundamental information you need to know in order to make smart decisions. Chuck attended the University of Tampa in the 1970s, and while at UT, his economics professor presented a thesis that stated,
"Earnings determine the market price of a publicly traded company in the long run." This idea lodged itself in Chuck's mind and became his life's work. After meeting Julie Carnevale, his wife and business partner, they began working together to develop their ideology based on the idea that earnings determine market price. Together they were graphing thousands of companies when they realized that they had discovered the truth of the thesis that there existed a strong relationship to earnings and market prices in the long run. In 1992, they hired Tim Loudin, an information technology specialist that possessed the programming skills necessary to automate the Carnevale's research needs. Chuck's vision was developed into what is now the F.A.S.T. Graphs™ cloud-based software. F.A.S.T. Graphs™ has become the tool Chuck had been looking for all along. Within a matter of minutes, Chuck could examine the relationship of operating results to price performance on thousands of companies. F.A.S.T. Graphs™ has access to 20 years of the necessary historical data on thousands of domestic and Canadian public companies. was he F.A.S.T. Graphs tool takes all the hours of manual graphing of business fundamentals and reduces it to seconds, giving you critical information in an instant. This charting tool has been used by Chuc, for a number of years, and they decided to create an online forum to allow every investor the opportunity to use this unique tool.
less
Latest Comments
How Can You Avoid Value Traps In This Market?
Jim,
Thanks for your input. However, with all due respect, I suggest you are misconstruing what I was showing with AVP. I simply used it as an example to illustrate what a true value trap looked like. Nothing in my analysis was in reference to what might be happening with AVP going forward. However, since you brought it up, if you look closely at the FAST Graph in the article, you will notice that estimates suggest a strong recovery in 2016. On that basis, it could be argued that a recovery is in the making.
Nevertheless, to repeat and clarify; my utilization of AVP in this article had nothing to do with the company’s future. Instead, it was simply used as an example to illustrate how a company’s stock price would track a long-term trend in falling earnings, even when historical current valuations appeared reasonable.
Regards,
Chuck
How Can You Avoid Value Traps In This Market?
Susan,
Please see reply to Wax above.
Regards,
Chuck
How Can You Avoid Value Traps In This Market?
Wax and Susan,
I’m sorry you are finding FAST Graphs confusing. Actually, they are very simple to understand once you know what you are looking at. FAST is an acronym for fundamentals analyzer software tool. What makes this stock research tool different is that it focuses on the business behind the stock. The orange line on the graph represents a reference of intrinsic value based on widely-accepted formulas for valuing a business. The orange line is drawn by placing a multiple on each year’s earnings.
In the Pentair graph, the orange line represents a P/E ratio of 15 across the entire graph. Therefore, if the price is touching the orange line anywhere, the stock is trading at a fair value P/E ratio of 15. Conversely, if the price is below the line, it is trading at a lower P/E - and vice versa.
The black line on the graph represents monthly closing stock prices overlaid on to the graph. When the price is above the orange line, overvaluation is indicated, and when the price is below the orange line, undervaluation is indicated. Note how the price tracks earnings over the long-term, and when it gets disconnected it inevitably moves back into alignment. Since price is currently below the orange line, which represents fair value, Pentair appears undervalued with a P/E ratio of 11.2. On a live graph you would be able to point to the orange line and a pop-up would appear indicating what a fair value price would be today.
Finally, if you are interested, here is a link to a paper titled The Interpretation of the Earnings and Price Correlated FAST Graphs Made Simple that will assist you in understanding FAST Graphs.
www.fastgraphs.com/.../...aphs%20Made%20Simple....
Regards,
Chuck
How Can You Avoid Value Traps In This Market?
Wall Street Jack,
Thanks for your comment, I found it interesting. However, there is a difference between a down year where the company was still profitable, but earnings were slightly lower than the previous year versus a company that is actually generating losses. Most cyclical companies will go through periods of rising and falling earnings over time. However, the strong ones will always be profitable in each and every year. In other words, the earnings of many cyclicals tend to be always positive. Frankly, like you, I would never buy a company that was producing losses.
Regards,
Chuck