TRADE VALUE Attitude             

     Ever since the book Performance Cash was published that defined OiBiTDA,  I have been have seeking an OiBit relation to trading value, at any time, at any price. Such was found after my Utility Patent Filing of October 2009 (not exactly in holy grail years from 2003) — the timing could not be better for Reform & Accountability for all Interested Parties. The simple use of $1000 as Hours Owned is already conveyed within Inve$tor Tran$parency℠ as a Numerical Benchmark with an ROI as a Patent Pending.  

The NYSE and the DJIA is not exercising the law of supply and demand as often highlighted by daily share volume. There is no way to separate demand for 30 or 3000 listed Corporations virtually doing the same thing; except for how good they are at generating profitable cash—thus OiBiTDA.         

Fortune’s March 07 quote sealed OiBiTDA’s fate and my use for Shareholders, when the Magazine added this comment to the same five nomenclatures as mine, “the yardstick for communicating cash generation”. Cash generation in any economy being plowed back for capital expenditures and measured by Hours Paid as a divisor is that yardstick.                            

When $1,000 is divided by the closing price of a stock it conveys Shares Owned—that is the price as dictated by Day Traders that have no intension of keeping the stock as a long term investment. I now had an ownership numerator to my Patent’s Hours Owned aligned to ROI as also expressed as a Ratio when divided by the number one. As with any percent generating Cash is the numerator for how much is Owned. 

What to call Ownership for whom ever is paying its Trading Value, if not as supplied or demanded? There are two distinct attitudes influencing the Price Paid for active stocks. Day Traders who are in for the short haul and quick buck which can be a little as a day and pennies. Investors where penny price variances are not a factor as to time held. You probably will not believe that the Price Attitude Ratio expressed as a curve percent came prioir to the call letters, PAR.  

          Further Explanations for PAR that Exactly = 100%

Because Price is relative to Trading Value, and OiBiTDA is relative to Performance Cash they are not meant to meet numerically as a ratio for individual stocks (1 to 1 or 5 to 5)  which is exceeding good when Investing. But not for Trading because such a condition will not sustain itself when eventually realized.  

Stocks performing bank activities should have high PARs because of leverage needs. In the days before the credit crunch Merrill Lynch’s PAR was the only one I encountered at over 100%.

Please observe within another tab, Other PARs and how far the economy is “not removed” from a bad situation.     

Less predictability and more risk is attached to single digit PARs for which there are many as experienced in the early 2000’s when the Internet bubble burst, after which most stocks jumped into the Investor pool. Other PARs within this website has some very low digits for some very active stocks.  

The Model and its Curve Percent allow for:

1) All Public Equities to be compared with all others

2) All Baskets of Public Stocks, Mutual Funds, and Hedge Funds etc. to be compared to all others where PAR can easily approach and even exceed 100% by investing in the best ROIs.      

Now to further unwrap the use of Benchmarks & ROIs (positive & negative) within a  Dow  30 Performer from Weekly Universal OiBiTDA Grids (positive & negative).

  The below Chart is that of Microsoft with Actual Quarter 3 2009 Totals as imposed by me as to Segments and/or Product Lines with the non-allocated Paid Hours that would be reported weekly, (40 for salary and paid for hourly personnel) for each employee.

The Grid’s Patent includes column 7 as “Earned” & entered weekly from Sale Dollars and/or a unit count of Invoices, Transactions* or specifically Cars, pounds etc. The counts can be different at every location with the prescribe amount as set from the prior Quarter Paid Hours/ as divided by Sales $, Invoices etc. etc..

*As quoted from digital book Performance Cash Page 20. " The 3 P's & most revealing components of each transaction are Product, People & Performance Cash. The effectivness of financial reporting is how sales, hours & cash flow are exposed from all the transactions of a business.    

Thus the percent efficiency of column 8 for each Segment or Product Line and each Cost Center by column 6 with a numerical benchmark by column 5.  All because Trading Value of $1,452.31 is an Hourly Rate as scored by those Paid and Earned by those Sold.