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Deja Vu #11: Can Restricted Stock Studies Be Used to Estimate DLOMs for Dividend-Paying Companies?

Chris Mercer

This eleventh post in the Deja Vu series involving restricted stock studies addresses an issue that is rarely mentioned in the context of the studies – of the impact of dividends on restricted stock discounts (RSDs). This 2008 version had information on 477 restricted stock transactions, up from 430 transactions in the 2004 version.

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A Follow up on Inflation: The Disparate Effects on Company Values!

Musings on Markets

Historical Data: 1930-2019 To see how this framework works in practice, let's start by looking at the performance of US stocks, across the decades, and look at the returns on stocks, broadly categorized based on market capitalization and price to book ratios.

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Data Update 2 for 2023: A Rocky Year for Equities!

Musings on Markets

I will follow up by looking at the mechanics that connect stock prices to inflation, and examine why the damage from higher inflation can vary across companies and sectors. The first is the dividends you receive, while you hold stocks, a cash flow stream that provides a measure of stability to investors who seek it. Stocks: The What?

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Data Update 2 for 2024: A Stock Comeback - Winning the Expectations Game!

Musings on Markets

While stocks had their ups and downs during the year, they ended the year strong, and recouped, at least in the aggregate, most of the losses from 2022. Stocks ended the year well, with November and December both delivering strong up movements, and while this left investors feeling good about the year, it was a rocky year.

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Market Resilience or Investors In Denial? A Mid-year Assessment for 2023!

Musings on Markets

I am just not good at it, and the first six months of 2023 illustrate why market timing is often the impossible dream, something that every investor aspires to be successful at, but very few succeed on a consistent basis. Markets, as is their wont, live to surprise, and the first six months of 2023 has wrong-footed the experts (again).

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The Power of Expectations: Nvidia's Earnings and the Market Reaction!

Musings on Markets

That drop of more than $200 billion in market capitalization in response to what looked like good news, at least on the surface, puzzled market observers, though, as is their wont, they had found a reason by day end. on June 18, 2024, and a low of $92.06, on August 5, before ending at $125.61

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Dealing with Aging: Updating the Intel, Walgreens and Starbucks Stories!

Musings on Markets

Second, they have all been in the news in the last few weeks, with Starbucks getting a new CEO, Walgreens announcing that they will be shutting down hundreds of their stores and Intel coming up in the Nvidia conversation, often as a contrast.

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