NYSE:UBS
$15.36
(3/12 2:31PM)
+1.7%
| Open | $15.55 |
Mkt Cap | $53.2 Billion |
| High | $15.58 |
52Wk High | $23.80 |
| Low | $15.29 |
52Wk Low | $9.39 |
| Volume | 3.7 Million |
Avg Vol 10D | 4.0 Million |
Ockham's Rating/Recommendation Summary
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UBS Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, UBS the high and low end of the Price to Sales per share ratios are 1.42x and 0.74x respectively.
Notice that UBS's current Price to Sales per share ratio is 1.34x, which is well above its historical average. This means that UBS looks relatively expensive compared to its historical Price to Sales average, and thus it is more difficult to believe that there is significant price appreciation potential. In order for the stock to become more attractive, we would like to see a decline in the Price to Sales ratio of 24% just to return UBS to its historical average.
UBS Cash Earnings
Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on UBS from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company.
Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for UBS, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.
UBS Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
Discussion of Debt at UBS on Naked Capitalism
Leverage is not necessarily a bad thing for UBS or any other company, but staying informed on their debt is important. A recent story from Naked Capitalism discusses UBS's debt.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Ubs AG has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on UBS because the price has gotten too high to be justified by the fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Ubs AG underperforming.
“… *** But as I have previously noted, UBS economist Paul Donovan has demonstrated that governments can’t inflate their way out of debt traps, saying: The problem with the idea of ... …”
UBS's Debt Load is the Topic on Zero Hedge
In the aftermath of the credit crisis, debt is a key area investors should understand. A recent news story on Zero Hedge talks about UBS's debt load.
The latest news on UBS has created quite a stir as the stock is trading $0.80 higher in today's session. We noticed recently that in comparison to all other stocks we analyze in the news; UBS has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… Today we get our answer: the parties that Lehman used exclusively to mask its true leverage ratio were Barclays, Mizuho, UBS, Mitsubishi, Deutsche Bank, KBC and ABN Amro. …”
Ubs AG Was Talked About by Zero Hedge
As always, the latest news on UBS is available to Ockham clients through RazorWire, and it was mentioned recently on Zero Hedge.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; UBS has received less coverage from the financial media in business television and blogs. The latest news on UBS has created quite a stir as the stock is trading $0.80 higher in today's session.
“… We read from the report:In the 2007 to 2008 period, Lehman’s Repo 105 counterparties were primarily restricted to Mizuho, Barclays, UBS, Mitsubishi, and KBC, though some of these ... …”
Zero Hedge Scanning the Balance Sheet at UBS
Investors in UBS should stay up to date on developments in the company's balance sheet. RazorWire has noticed a discussion of the balance sheet recently on Zero Hedge.
The crowd at The Motley Fool does not like UBS and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, UBS has been less covered in the news compared to the rest of our universe of stocks. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.44% today. At Ockham, we are not advising buying Ubs AG at the current price level because according to our methodology it is not supported by the fundamentals.
“… Third, as getting information out of US banks has proven next to impossible, it is time to bring in the counterparties: Mizuho, Barclays, DB, UBS and Mitsubishi, and demand that ... …”
Look Out for Ubs AG: Its Very Active in the News
UBS has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
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Learn About RazorWire?News Developing on Inside Track With Deidre Bolton and Erik Schatzker for UBS
The latest news on Inside Track With Deidre Bolton and Erik Schatzker in regards to UBS came through on RazorWire recently.
We noticed recently that in comparison to all other stocks we analyze in the news; UBS has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… Banks and the domino effect for europe today, bank of ire land, UBS and all three different banquets all showing raises and fwangse best-performing industry group today. …”
Ubs AG Talked About Near M&A Discussion on Closing Bell
News broke today regarding mergers and acquisitions and Ubs AG was discussed as well on Closing Bell. Other sources will be required to know exactly what the context was in the discussion.
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Learn About RazorWire?Stocks to Watch: UBS Heavily Covered on National Post Network Blogs
UBS has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
As of this week's report, we have an Overvalued valuation on UBS because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Ubs AG has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Ubs AG underperforming.
“… UBS economist Tao Wang wrote that the RMB could end the year 5% stronger than it is now. With that in mind, UBS analyst Dan Rollins calculated the potential impact of a 5% RMB ... …”
Bloomberg News: UBS is Among Most Active Stocks in the News Today
We are observing a lot of attention being paid to UBS in the news, so if you hold the stock you may want to take a look at what is going on.
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Learn About RazorWire?Squawk On The Street: UBS is Among Most Active Stocks in the News Today
We are observing a lot of attention being paid to UBS in the news, so if you hold the stock you may want to take a look at what is going on.
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Learn About RazorWire?