The Offense Report serves as a reminder of companies that may be overvalued. It lists all of the companies in your selected portfolio and highlights those whose reward/risk or return figures might indicate that the stock is a good candidate to be sold before the rest of the market recognizes that the Reward/Risk or Total Return are too low to sustain the current value.
Portfolio Offense Description
The portfolio Offense report is divided into several columns:
- Company, Ticker, Qtr End – These three columns show the name, ticker, and most recently ended quarter for each company.
- Relative Value – A measurement of the difference between the Current and Average P/E for the last five years. There is no exactly perfect Relative Value, but it’s generally considered that a stock with a Relative Value over 110 may be over-valued, while a stock showing lower than 85 is considered a good reason to research why the market isn’t paying more for the stock.
- Projected Rel Val (Relative Value) – Similar to Relative Value, except that instead of the current PE, Projected relative Value uses Estimated P/E instead of Current P/E.
Highlight Colors on the report
When reading the Portfolio Offense Report, you may see some of the numbers highlighted in pink.
- The Reward/Risk figure will be highlighted if it is below 3 to 1.
The Total Return figure will be highlighted if it is lower than 15.