Page 9 - Evaluation - The Studies continued   [3 Go Back] 

Composite Future Projections
        Up until this point. the Future Projection feature of Equity Evaluator has only reflected the evaluation of the individual Studies. Composite Future Projections brings the four individual Study's Future Projections together for comparison. To access the Composite, return to the Data Entry view, click 'Go To' on the menu, and choose 'Composite Future Projection'.
        This page brings together calculated results from all of the Studies that have been opened by the user. At least one Study must have been accessed to enable and access this feature the first time. Default settings for the Composite include;

• Only Studies that have been opened will be represented.
• Only the first calculations listed for each of the two investment methods of the individual Study's Future Projection views are used
• Results from the Dollar Averaging method are displayed when this feature is first opened.
• All of the imported values that are displayed, and marked 'Include' are used in the averages at the bottom of the page.

         Once opened, any or all of the values from the separate Study's can be excluded from the averaging process by clicking the appropriate radio button labeled 'Exclude'. Clicking the 'Include' button will bring any excluded results back into the averages. This feature has been added so that the user has the flexibility to eliminate evaluation results that seem inappropriate.
        If 'Today's Stock Price' was entered on the Data Entry view, clicking the 'Single Lump Sum' button in the 'Calculation Method' box near the top of this page, will both enable the Stock price entry box while importing the results from the Lump Sum calculations of the different Studies that have been opened. If Today's Stock Price was not already entered, it must now be entered in order to complete calculation of the Lump Sum values. If need be, enter or change the Stock Price, press the tab key and the 'ReCalc' command button is enabled. Click this button and the Lump Sum values from any Studies that have been opened will be displayed, with the averages at the bottom of the page. These values will be calculated using the Stock Price entered.

         In this evaluation example using Johnson Controls, the Dollar Averaging results are considerably higher than the Lump Sum results. This will occur when evaluating any company with growth prospects when the present price of the Stock is above the Trend Line in the Stock Price Study. The results of the preferred Dollar Averaging method are quite strong, indicating the possibility of close to a 90% gain in a five year period if trends continue as anticipated. Of course there is no guarantee that a future investment in JCI will yield these results, but you can bet that the individuals buying Johnson Controls Stock five years ago are happy with the results of their purchase. In conclusion, Johnson Controls is definitely a Stock investment worth further consideration for a direct purchase account using dollar averaging and dividend reinvestment.

        This concludes the review of the Evaluation portion of the Equity Evaluator program, used to evaluate the historic fundamental data from a Company. When searching for a new investment, the purpose of Evaluation is to ascertain growth trends in a company that can reasonably be expected to continue. Once a Stock position has been established, the task of the investor changes from evaluation to one of monitoring the perceived trend to make sure it continues to hold up. If the trend does not continue, perhaps the time has come to consider reducing or closing the position.