19 03, 2010

The Comeback Kids

2010-03-19T16:29:50+00:00March 19th, 2010|Categories: The Views|Tags: , , |0 Comments

I introduced the subject of Net Profit Margin, NPM, two weeks ago because first quarter earnings reports were quite good, but that wasn’t good enough for many analysts…they were looking for signs of better sales growth. Everyone knows that sales growth is vital to a company’s long-term viability. Increased sales normally lead to rising earnings [...]

12 03, 2010

A Whole New Dimension

2010-03-12T16:14:51+00:00March 12th, 2010|Categories: The Views|Tags: , , , , |0 Comments

Net Profit Margin, NPM, which I introduced last week, shows the after tax profit that a company makes, in percent, for each dollar of sales it receives. It directly relates bottom line and top line performance in one simple figure and, therefore, is a wonderful measure of profitability. Take La-Z-Boy, Inc., LZB, yesterday’s top stock [...]

5 03, 2010

Romancing the NPM

2010-03-05T15:37:37+00:00March 5th, 2010|Categories: The Views, VectorVest|Tags: , , , , |0 Comments

About 30 years ago, I was in charge of a billion dollar business that was largely involved with a commodity, plastic. We were the world’s leading producer of this plastic, making over two billion pounds a year. In order to cut costs, the business was integrated back to its basic raw materials that came right [...]

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