I have 1300 companies from the australian stock exchange.
In the first analysis I want to examine the association between their reported earnings per share and the following years share price performance.
1.. For each of the companies, calculate the increase (or decrease) in share price between each year. Use the formula (2013 price - 2012 price) / 2012 price for example, for 2012.
Use the formula (2014 price - 2013 price) / 2013 price for example, for 2013 etc.
2. Divide the companies first into cohorts using their MarketCap.
Small (<250 mil)
Large (bigger than 250 mil)
2. For 2012-2016, divide the small and large company portfolios into ten smaller portfolios, based on their earnings per share that year.
In other-words, the small caps in the highest 10% of earnings per share growth for 2012 year will be portfolio 1, the second highest 10% of earnings per share growth for 1 year 2012 will be portfolio 2...the lowest 10% of earnings per share growth (negative growth) will be portfolio 10.
3. Exclude companies with zero data.
4. For 2012, their should be 20 porfolios (10 portfolios of small caps, 10 portfolios of large caps). I want to see the median and mean percentage increase (or decrease) of the share price for each of those portfolios.
5. Repeat for 2013,2014,2015,2016
December 8, 2017
I am looking for a mix of experience and value