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  • Earnings drive the value of a company.
  • Earnings revised upward by analyses of major institutions are powerful drivers of a company's value.
  • Increases in dividends provide excellent measurement of a company's financial well-being.
  • Low debt-to-equity ratio is requisite for a company's stock to be placed in a client's portfolio.
  • Increasing net margins signify low competition and/or management's ability to reduce cost.
  • In the banking sector we want to see companies with efficiency ratios better than their peers.
  • We track trading volume of 10,000-share blocks to determine if institutions are buying or selling.
  • We study the 50-day and 200-day trend lines to find optimal entry points.
  • We watch the "up-down" ratios looking for higher volume on "up" days.
  • "Standard deviation" is a measurement of volatility, and volatility is a measurement of risk; the greater the volatility, the greater the risk. Historically, the standard deviation of bonds is approximately 4% and of stocks approximately 15%.
  • We track the standard deviation of our client’s accounts on a monthly basis and report it to them quarterly on a simple, easy-to-read RISK METER:
    Risk Meter
  • "Beta" is also a risk-measuring tool that shows a comparison of how the portfolio’s risk compares to that of a benchmark. Many brokers only look at beta to evaluate risk. But, since beta never tells investors how much actual risk they are exposed to, it is an inappropriate device for determining risk in a client’s portfolio. Although we will look at beta for reference in combination with other risk factors, we avoid using it as an exclusive risk-measuring tool.
  • We use data compiled and reported to us from the independent Economic Cycle Research Institute (ECRI). They track peaks and troughs of business and economic cycles using their proprietary Leading and Coincident indicators.
OakTree Investment Advisors incorporates a four-part analytical approach in our buying and selling process. Successfully integrating fundamental, technical, risk, and macro analyses provides an optimal comprehensive strategy to meet or exceed investment objectives.
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