Market Focus: Watching Shares of Gleacher & Company, Inc. (OTCPK:GLCH)

Investors may be checking out multiple metrics for Gleacher & Company, Inc. (OTCPK:GLCH). Currently, the company has an MF Rank (Magic Formula) of 16778. Successful hedge fund manager Joel Greenblatt developed the Magic Formula which was introduced in his book “The Little Book That Beats the Market”. Greenblatt was focused on a method for identifying bargains when purchasing company stock. This included spotting companies that earn more relative to the stock price, or companies with a high earnings yield. The Magic Formula may help identify strong, healthy companies. The MF is calculated using earnings yield and ROIC ratios. In general, investors may be looking for stocks with the lowest combined MF Rank.

Investors are always trying to identify the next great stock to own. Finding the next winner to pad the portfolio may involve very hard work and a shot of market magic. Analyzing the sea of information about public companies can be a daunting task. Many sharp investors will approach the equity markets from multiple angles. This may include keeping close tabs on fundamental and technical data. Gleacher & Company, Inc. (OTCPK:GLCH) has a present Value Composite Score of 41. This score lands on a scale from 0 to 100 where a lower score would indicate an undervalued company and a higher score would indicate an overvalued company. This ranking was created by James O’Shaughnessy using six different valuation ratios including price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings, and shareholder yield.

Investors may be focusing on some quality ratios for Gleacher & Company, Inc. (OTCPK:GLCH). Currently, Gleacher & Company, Inc. has a Gross Margin (Marx) ratio of 0.015875. This number is based on the research by University of Rochester professor Robert Novy-Marx. Marx believed that a high gross income ratio was a sign of a quality company. Going a little further, Gleacher & Company, Inc. has a Gross Margin score of 59. This score is based on the Gross Margin (Marx) calculation using a scale from 1 to 100 where a 1 would be considered positive, and a 100 would be seen as negative.

Investors may also be tracking the EV (Enterprise Value) for Gleacher & Company, Inc. (OTCPK:GLCH). Currently, the firm has an EV of -44828. Enterprise Value is a measure of the total value of a specific company. EV may often be used as a more comprehensive alternative to simply tracking the market cap of a firm. Enterprise Value is frequently used by value investors to help spot undervalued companies. EV is typically considered a more accurate calculation of total company value because of the inclusion of debt obligations.

Active investors might be tracking Return on Invested Capital (ROIC) information on Gleacher & Company, Inc. (OTCPK:GLCH). ROIC is a metric that can be used to assess the efficiency of a particular company at allocating controlled capital into investments that are profitable. ROIC can provide a good sense of how a company is using its money to generate returns. ROIC may provide the clearest view of just how efficient a company is at using its capital. Gleacher & Company, Inc. currently has an ROIC of -0.808561. The current ROIC 5 year average is 0.065301 and the ROIC Quality ratio is currently -1.496951.

Leave a Comment