Dec 172017
 
Security Analyst is a program for fundamental analysis of stocks. It takes balance sheet numbers and makes sense of them.
File SA310.ZIP from The Programmer’s Corner in
Category Financial and Statistics
Security Analyst is a program for fundamental analysis of stocks. It takes balance sheet numbers and makes sense of them.
File Name File Size Zip Size Zip Type
AMP89.SB3 137 132 deflated
ATT87.SB3 137 136 deflated
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ECO88.SB3 137 130 deflated
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HB87.SB3 137 130 deflated
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REN88.SB3 137 129 deflated
REN89.SB3 137 130 deflated
REN90.SB3 137 127 deflated
RYL87.SB3 137 131 deflated
SA.DOC 33067 10390 deflated
SA.EXE 163008 53450 deflated
SA3.DAT 668 118 deflated
SA3SETUP.EXE 45968 19951 deflated
SNA87.SB3 137 130 deflated
SNA90.SB3 137 133 deflated
UPLOAD.ME 331 191 deflated
WHTI87.SB3 137 128 deflated
WHTI88.SB3 137 130 deflated
WMX88.SB3 137 133 deflated
ZRN88.SB3 137 127 deflated

Download File SA310.ZIP Here

Contents of the SA.DOC file























Security Analyst
Version 3.10
March 25, 1992


Copyright 1989, 92 by Donald T. Rosenberger






























INTRODUCTION



Security Analyst is a program for fundamental analysis of
stocks. It takes balance sheet numbers and makes sense of them.
There may be ratios or formulas that I have left out of the
program, but there is no way to make this program right for
everyone. Any comments or suggestions about what you would like
to see in the next version would be greatly appreciated. I plan
to make future program upgrades, hopefully with suggestions from
users.

The only things I will not consider putting in the program are
technical analysis tools. I have nothing against technical
analysis but I do not use it myself and there are plenty of
programs out there for that. For those of you who do not know
the difference, Fundamental Analysis is the analysis of balance
sheet and income statements of companies in order to forecast
future price movements. The idea is to determine if the current
market price reflects an undervalued or overvalued stock.
Technical Analysis relies on price and volume movements of stocks
and does not concern itself with financial statistics.

I personally prefer fundamental analysis. I believe that if
you buy good companies in good businesses you can not go wrong.


SHAREWARE LICENSE AGREEMENT

This software must be used in unmodified form, complete with
this documentation file included. This software may not be sold
or distributed with any other product without the written
permission of the author. No user may modify Security Analyst in
any way; this includes disassembling or reverse engineering the
program. Security Analyst Version 3.10 is not public domain
software. You hereby agree to register your use of this program
after a reasonable test period. Use of this software constitutes
an agreement to the above terms.










Page 1






REGISTERED VERSION LICENSE AGREEMENT

This software must be used in unmodified form, complete with
this documentation file included. This software may not be sold
or distributed with any other product without the written
permission of the author. No user may modify Security Analyst in
any way, this includes disassembling or reverse engineering the
program. Security Analyst Version 3.10 is not public domain
software. This program is for use on one computer only. Use of
this software on more than one computer requires a site license.
Use of this software constitutes an agreement to the above terms.


LIMITED LICENSE TO COPY

Security Analyst Version 3.10 in its Registered State may not
be copied except for archival purposes only. Security Analyst
Version 3.10 in its Shareware State may be copied and distributed
freely.



DISCLAIMER

The author, Donald Rosenberger, makes no warranties expressed
or implied as to the accuracy, quality or performance of this
program. There is no guarantee to the completeness or fitness of
this program for any particular use. The author shall not be held
liable for any damages from the use of this program. YOUR USE OF
THIS PROGRAM CONSTITUTES YOUR AGREEMENT TO THIS
DISCLAIMER and your release of the author from any form of
liability or litigation.



WHY THIS PROGRAM IS SHAREWARE AND WHY YOU SHOULD REGISTER


Security Analyst is a part time project of mine. It is my
hobby not my occupation. I am a small investor and found myself in
need of this program. Since programming is a hobby, I wrote this
program. I am distributing this program as shareware since
computing is an expensive hobby. Turbo Pascal (Numerous Upgrades),
toolkits, long distance charges, distribution expenses and a
bulletin board system are just some of the costs involved in this
operation.


Page 2



Also I believe I get more feedback because of registered users
than I would if the program were public domain.

I believe this program represents good value. I have found
several programs that in my opinion are not as good as Security
Analyst and cost more. I have only found one program I believe to
be better than Security Analyst; it costs over 20 times what this
program does. For your money I think Security Analyst is the best
deal.



COMPATIBILITY

This program should be compatible with all IBM PC's and
compatibles. It has been written on a Advantage 386, Compaq 286
and a IBM PS2 model 50. I have had no problems on any of these
machines. The program runs under DOS 3.1 and up. I have not
checked but DOS 2.1 and up should be ok. The program will need a
minimum of 256K of RAM, although I recommend more. If anyone has
any problems running the program please write me describing the
problem and list your hardware and software configurations.



WHERE TO FIND DATA

Most of the data used in this program can be found in
corporate annual reports. This yearly information can be updated
with quarterly reports. After some practice I have found it takes
about five minutes to find and enter the data into the program and
get your report.

















Page 3



INSTALLING SECURITY ANALYST

The program will run from your hard disk or floppy disk. I
recommend using a hard disk if available. If you are not sure how
to install the program to a hard disk follow the directions below.

Using the Install Program:
This version of Security Analyst comes with a install
program. To use the install program just type the following.

A:INSTALL Just answer a couple of questions and your
done.

OR if you have any problems with the install program or would
prefer to use the DOS commands. Type the following.

C: Or any other drive of your choice
MD\SA3 Make a directory called SA3
COPY A:*.* C:\SA3 Copy files to your SA3 Directory

If you have any other questions about installing Security
Analyst please refer to your DOS manual.



RUNNING SECURITY ANALYST

Type the following at your DOS Command line:
C:\SA3> SA

This will load the program in memory. You many run the setup
program from the command line or from inside the program.


HOW TO USE SECURITY ANALYST

NAVIGATING THE MENU

When you first load the program you will be presented with a
horizontal menu. At this menu you have four choices - Main Menu,
Help, Utilities, and Quit. Main Menu is where you will find the
main part of the program. Help is a small section just for getting
you started and familiar with the program. Utilities contains a
DOS Shell, Setup Program, and Registration Information. Below each
section will be explained in detail.






Page 4


MAIN MENU

Entering Data And Saving Files

At the main menu pick ENTER DATA. The next window will ask
you to enter a file name. You will have eight spaces to fill in a
file name. I suggest using the ticker symbol and the last two
digits of the year, such as "FDX87" for Federal Express
Corporation 1987. What you want to call it is up to you but the
file extension ".SB3" is fixed and can not be changed. If you
just hit ENTER and do not give the file a name the program will
name the file "NONAME.SB3". You may rename this at DOS or not
worry about it.

After choosing your File Name start at the top of your first
data input screen and enter the Company name, Ticker and Data Date.

This may be in any format you like because the program does not
care. Then start inserting the numbers. You must not use commas
between the numbers (999,000) because the program can not handle
this and will probably crash. (I'm working on this, next version
I promise).

After you finish inputing your numbers press the Page/Dn key
to go to the second input screen. You may toggle between the input
screens using the Page/Up Page/Dn keys. After you have finished
entering your numbers at the end of the second input screen press
the Page/Dn key to calculate and display the results.

Navigating the input fields is fairly easy. The following
keys may be used in the input and edit fields:

Delete Key: Deletes text to the right of the cursor.

Backspace Key: Deletes text to the left of the cursor.

Home Key: Moves the cursor to first position of the
current field.

End Key: Moves the cursor to the last character in
the current field.

Cursor Keys: All four cursor keys (arrow keys) move
the cursor in the direction you indicate.
Insert Key: Allows you to insert text into
the current field at the cursor position.

You may call up a pop-up calculator while using the input
screens. Press F4 to call the calculator. To insert the value
from the calculator into the program just press F10.

Page 5

RETRIEVE REPORT


At the main menu pick "RETRIEVE REPORT". Pick the file name
from the directory box. If no files are present either no files
exist or you have not chosen the correct directory path in the
setup program. After choosing the file name the program will load
the data, recalculate and display the results.


Navigating The Output Screens

The results are displayed on two output screens that you use
the Page/Up and Page/Dn keys to switch between. In this version the
results are displayed in categories. This makes the ratios easier
to analyze and read.

You have a choice of doing two things from the output screens:
(1) Press F2 to save the file (this is automatically done by the
program but you may find this useful if you wish to change the file
name or have changed the data in the Edit section), or (2) Press
F10 to Edit the data (this is useful for preforming What If
scenarios).


EDIT DATA FILE

At the main menu pick "EDIT DATA FILE". Pick the file name
from the directory box. If no files are present either no files
exist or you have not chosen the correct directory path in the
setup program. After choosing the file name the program will load
the data and bring up the input screens. At this point make any
changes you like and recalculate the results. Be sure to Save your
File because the program will not do this automatically. You may
repeat this cycle as long as you like.


PRINTING A REPORT


At the main menu pick "PRINT REPORT". Pick the file name from
the directory box. If no files are present either no files exist
or you have not chosen the correct directory path in the setup
program. After choosing the file name the program will load the
data, recalculate and print the results. If your printer is not ON
the program will tell you.






Page 6


RETRIEVE 3 YEAR REPORT

At the main menu pick "RETRIEVE 3 YEAR REPORT" then pick the
file name from the directory box. Repeat this step two more times.

There will be a window in the upper right corner of the screen that
will tell you the files you have picked. After you have chosen
your files they will be displayed in three columns on three
screens.


PRINT 3 YEAR REPORT

At the main menu pick "PRINT 3 YEAR REPORT" then pick the file
name from the directory box. Repeat this step two more times.
There will be a window in the upper right corner of the screen that
will tell you the files you have picked. After you have chosen
your files they will be printed in three columns on one page.


INTERPRETING THE RESULTS


While it is up to you to interpret the results, listed below
are the formulas used in this program. There may be different ways
to achieve the ratios. I have sometimes seen two or three
different formulas for 1 ratio. I have used the least complicated
ones for this program. Most are from financial management
textbooks, investment books and magazines.

I do however recommend the following books for your
consideration:

Security Analysis Graham & Dodd ISBN 0-07-013235-6
Quality Of Earnings Thornton O'Glove ISBN 0-02-922630-9
One Up On Wall Street Peter Lynch ISBN 0-671-66103-5
The Intelligent Investor Benjamin Graham ISBN 0-06-015547-7
Fundamental Analysis John C. Ritchie ISBN 1-55738-034-1




A NOTE ABOUT USER FRIENDLINESS

I have tried to make the program very user friendly. If you
find you have done something you do not wish to, just hit the
escape key and usually it will get you back to the main menu. You
may of course lose any work you have done at that point.



Page 7


PROGRAM SETUP

There is a setup program included with this version that will
allow you to set colors, maintain a separate directory for your
data files, and register your copy of the program. This program
may be called from within Security Analyst provided your system has
enough memory or may be run as a stand-alone program. To run it as
a stand-alone program just type SA3SETUP.EXE at the DOS prompt.


Choosing Program Colors

At the Main Menu pick "Choose Colors", then you have two
choices. First, you may reset all the program colors to the
original defaults. Second, you may customize the program colors to
suit your choice.

To make color changes pick from the menu which section of the
program you wish to change (menus, help, calculator, etc.).
An example for changing help screen colors is: pick a number
between 0 and 7 to set the background color, then pick a number
between 0 and 15 to set the foreground and border colors. If you
decide to do this please remember not to set a background color to
a value larger than 7. If you do this the color will blink.


If you decide to change colors have no fear you can always
return to my original defaults using this section of the setup
program. The Setup Program colors are preset and can not be
changed. I would be interested in hearing from users as to whether
the program and setup program should share the same colors.

Setup File Directory

With this version of the program you have the option of
keeping your data files in a separate subdirectory from the program
files.

Example:
C:\SA3 Security Analyst Directory
C:\SA3\FILES Security Analyst Files Directory

To setup your files directory pick "Setup File Directory" from
the setup menu and enter the drive and path name of the directory.
If the directory does not exist you will be prompted to try again.






Page 8



Display System Info

This is a simple screen that will tell you a little about your
system. You may find it helpful or you may not. You may notice
something in this screen called EMS with an OFF next to it. I hope
EMS Memory will be supported in the next version.


Register Program

This section is for those users who have sent in the
registration fee. It will allow you to customize your copy of the
program with your name and company name. It is not necessary to
enter a company name, but it is necessary to enter the correct
serial number. Each registered user will receive a serial number.

The only changes to the program when you register is that your
name will appear in the program title box and the shareware screens
will not come up at program startup and exit. The program is fully
functional in both cases.

Save Setup Info

This will create a new setup file that will reflect any
changes you have made. The setup program will not automatically
save the new setup file so you must do this.


DATA INPUT DEFINITIONS


These remain essentially unchanged from previous versions
except that Preferred Stock Obligation is no longer needed.


1. Name Of Company : Any Name you choose up to 25 characters.


2. Ticker Symbol : The symbol of the company under which
the stock trades.

3. Data Date : The date for the data you are analyzing.
Any format for the date is acceptable.

4. Stock Price : The Closing price of the stock for the
date that corresponds with the data. You
may experiment with this, these are only
guidelines.


Page 9



5. Dividend : The amount of the yearly dividend. If
none set to 0.

6. Shares Outstanding : The number of shares of common stock
outstanding. Preferred stock not
included.

7. Gross Income : The total amount of sales, income or
revenues.

8. Net income : The amount equal to gross income minus
all expenses. Sometimes called net
earnings.

9. Total Assets : The Total Assets on the companies
balance sheet.

10. Current Assets : Cash, accounts receivable, inventory,
and other assets that can be converted
into cash or sold within one year.

11. Current Liabilities: Debt or other obligation coming due
within one year.

12. Stockholder Equity : The Equity that belongs to the holders
of common stock.

13. Fixed Assets : Plants, Equipment, and other forms of
hard assets.


14. Accounts Receivable: Money owed to the business for goods or
services sold on open account.

15. Inventory : The value of a firm's raw materials,
work in progress, supplies and finished
goods. There are two valuation methods
(FIFO) First In First Out and (LIFO)
Last In First Out. This is not a major
concern for the basic use of this
program.


16. Total Debt : The total long and short term debt.

17. Income Before taxes: Net Income before Income Taxes are paid.

18. Interest Expense : The amount of Interest paid on debt
during the year.

Page 10

FORMULAS USED IN THIS PROGRAM


1. Price to Earnings Ratio

The P/E ratio gives the investor an idea of how much you are
paying for one dollar of the company's earnings.

Price to earnings = share price / earnings per share



2. Price to Sales Ratio

The P/S ratio gives the investor an idea of how much you are
paying for one dollar of the company's sales.

Price to sales = (share price* shares outstanding) / Gross
Income


3. Price to Dividend Ratio

The P/Dividend ratio gives the investor an idea of how much
you are paying for one dollar of the dividend.

Price to Dividend Ratio = Share price / Dividend



4. Price to Book Value

The P/Book Value ratio gives the investor an idea of how much
you are paying for one dollar of the company's book value.

Price to Book Value = Share Price / Book Value


5. Dividend Yield

The percent of return you are receiving in dividends for your
investment

Dividend Yield = (Dividend x 100) / Share Price








Page 11



6. Earnings Yield

The inverse of P/E ratio. It is used to compare the
attractiveness of stocks to bonds and money market
instruments.

Earnings Yield = Earnings per Share / Share Price x 100


7. Earnings Per Share

The amount of after tax earnings per shares outstanding

Earnings per Share = Net Income / Shares Outstanding


8. Sales Per Share

The amount of total sales per shares outstanding

Sales per Share = Gross Income / Shares Outstanding


9. Book Value per Share

The liquidation value per share of a company's assets after
all liabilities have been subtracted

Book Value per Share = Stockholder Equity / Shares Outstanding



10. Payout Ratio

The Percent of earnings that are paid out in dividends

Payout Ratio = Dividend / Earnings per Share


11. Profit Margin

The percent of revenue that is left over after expenses

Profit Margin = Net Income / Gross Income x 100






Page 12




12. Return On Investments

This ratio is the key indicator of profitability for a firm.
Companies efficiently using their assets will have a
relatively high return.

Return on Investments = Net Income / Total Assets


13. Return on Equity

This ratio is used to analyze the ability of the firms
management to realize an adequate return on capital invested
by the owners of the firm.


Return On Equity = Net Income / Stockholder Equity * 100


14. Current Ratio

This ratio measures the degree to which current assets cover
current liabilities. The higher the better.

Current Ratio = Current Assets / Current Liabilities


15. Quick Ratio

This ratio is a better indication of how well a firm can
cover the current debt.


Quick Ratio = (Current Assets - Inventory) / Current
Liabilities


16. Average Collection Period

The average number of days it takes for a company to collect
on accounts receivable

Average Collection Period = Accounts Receivable / ( Gross
Income * 360 )





Page 13



17. Market Value

The total market value of all the firm's outstanding shares

Market Value = Share Price * Shares Outstanding


18. Inventory Turnover

How many times the inventory of a firm is sold and replaced
during the current period


Inventory Turnover = Gross Income / Inventory


19. Fixed Asset Turnover

How many times the fixed assets of a firm is turned over in
the current period

Fixed Asset Turnover = Gross Income / Fixed Assets


20. Total Asset Turnover

How many times the total assets of a firm is turned over in
the current period

Total Asset Turnover = Gross Income / Total Assets



21. Debt to Total Assets

The amount of debt(total) to the amount of total assets

Debt to Total Assets = Total Debt / Total Assets * 100



22. Debt to Equity

The amount of debt to the amount of Stockholder Equity

Debt To Equity = Total Debt / Stockholder Equity




Page 14



23. Interest Coverage ( times interest earned )

The number of times that income before interest & taxes
covers the interest obligation


Interest Coverage = Income Before Interest & Taxes /
Interest Expense



24. Reinvestment Rate

The amount of retained earnings that are available for
reinvestment in the company


Reinvestment Rate = ( EPS - Dividend) / Book Value * 100

The following are Ratios new to this version of the program:


25. Retention Rate

The inverse of dividend yield. It is the percent of earnings
retained by the company.

Retention Rate = (( EPS - Dividend ) / EPS ) * 100


26. Current Assets Per Share

The amount of the companies current assets divided by shares
outstanding

Current Assets Per Share = Current Assets /
Shares Outstanding

27. Total Assets Per Share

The amount of the companies total assets divided by shares
outstanding

Total Assets Per Share = Total Assets / Shares Outstanding






Page 15



28. Working Capital Per Share

Working Capital is the dollar amount of current assets minus

current liabilities. This ratio expresses this in a per
share amount.

Working Capital Per Share = ( Current Assets - Current
Liabilities ) / Shares
Outstanding

29. Total Price to Sales

Same as the Price to Sales ratio, but this ratio adds total
debt to the market value.

Total Price to Sales = ( Mkt Value + Debt ) / Gross Income

30. Net Sales To Inventory

Used as a measure of calculating inventory turnover

Net Sales to Inventory = Net Income / Inventory

31. Assets To Sales

A ratio that is used to measure asset utilization

Assets to Sales = Total Assets / Net Income


32. Current Liabilities To Inventory

This ratio helps measure the extent to which the business
relies on inventory to meet debts.

Current Liabilities to Inventory = Curr Liab / Inventory

33. Receivable Turnover

This is used as a indicator of the level accounts receivable
in relation to the amount of sales.

Receivable Turnover = Gross Income / Accounts Receivable







Page 16



VERSION NUMBERS

Version 1.1 released early 1988. written in basic. Public Domain

Version 2.0 released April 10, 1989. completely re-written in
Turbo Pascal 5.0 Public Distribution Version.

Version 2.10 released April 20, 1989. Same as version 2.0 but
with file save/retrieve/print.

Version 2.11 released July 1989. Minor bug fixes, Market Value
displayed in millions.

Version 2.50 released November 12, 1989. Error checking for files
ability to edit data.

Version 2.51 released February 1, 1990. Minor Spelling
corrections.

Version 2.52 released July 15, 1990. Fixed possible bug in input
routines. Added Error reporting on program aborts.
Added CRC Checking to program on startup. CRC
checking is a measure to help protect against
virus infection.

Version 3.0 released October 1, 1991. Major Overhaul.
Features include Directory Boxes, greater ease of
use. Ability to toggle between input screens.
Improved output screen layout. DOS Shell and Setup
Program. Ability to display or print three files.
Mouse Support in Directory Boxes and Menus.
Eight new ratios.

Version 3.10 released March 25,1992. Minor changes. Added keyboard
status indicators to input and edit screens. The
ticker symbol input line is now automatically capital
letters now. Introduction of NEW SUPPORT BBS for
program.

I encourage everyone to get the latest version available.











Page 17

PROGRAM UPDATE SERVICE

All registered users of Security Analyst will be notified of
any significant future upgrades by mail and how to get the latest
version. These notices will describe the changes to the program.
The cost of the upgrades has not been determined but will probably
be less than the original cost to register.

If you are a registered user who is not interested in
upgrading to a current version but would like to be kept on the
mailing list please notify me in writing. Otherwise, you may not
receive future program upgrade notices. This is only a measure to
help keep costs down.

ADDITIONAL INFORMATION


Any questions may be directed to me by mail. I like to hear
from my users. Most of the changes to this program and some future
changes are because of one of my registered users suggestions. You
can make a difference.

I now offer a support Bulletin Board System for Security
Analyst. Please call with any comments, bug reports, suggestions or
just to download the latest version.

Send Correspondence To:
Don Rosenberger
c/o Chelsea Systems
P.O. Box 10774
Alexandria, Va 22310-0774

Chelsea Systems BBS (703) 922-4077



WHAT'S CHELSEA SYSTEMS

Chelsea is my Chocolate Labrador Retriever. So it seems like
a good name to put on this endeavor. Chelsea Systems is not a
business, it is my hobby.











Page 18


THE LATEST VERSIONS

I will upload the latest versions of this program to the
following Bulletin Boards.

Chelsea Systems BBS (703) 922-4077
Compuserv NIAC & Investment Conference
VA Connection BBS (703) 648-1841
Computer Connections (202) 547-2008
The Main Frame BBS (301) 654-2554


WHAT'S NEXT

Version 3.5 is next. It will have the same look and feel as
this version. At this time the majority of programming is complete
on version 3.5, but some complex problems remain. I will do my best
to get the next version out in a timely manner, but at this time I
am not setting a target date.

Version 3.5 will have the following features while remaining
compatible with Version 3.0.

Some of the changes will be:

1. Addition of cash flow ratios, EBDIT (earnings before
depreciation, interest & taxes). In all, the program will
have over 50 ratios. This will be contained in a separate
section so that users will have two different levels of
analysis.

2. Online Help.

3. A miscellaneous ratios sections with the following:
Z-Score
Business Multiple
Intrinsic Value
Dividend Discount Valuation
Value Ratio


Registered Users will have first shot at upgrading to
version 3.5.

Please send any comments or suggestions to me. With your help
Security Analyst will be the best program for Fundamental
Analysis.




Page 19

CREDITS

The following people have been of great help with this program
and deserve credit.



Richard Fleeson My Turbo Pascal Wizard.

Jerry Persall One of my first registered users
who has been instrumental in
helping shape this program.

Joanna Rosenberger For correcting all my spelling
mistakes.

Paul Hanulya For Typesetting this
documentation.

Rick Fothergill For writing a great Menu and
Windows Toolkit.

Technojock Software For making life easer.

Eduardo Ferreira For loaning me the computer to
start the BBS.







END










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