His focus is on analyzing market and valuation history, sector momentum and like factors to provide a background for making strategic investment decisions.
Inputs into the model include gas generation in the three scenarios, gas capacity on the spot market, and valuation for gas (spark spread determined by the difference between electricity price and forecasted gas price from the regression model).
But transparency isn't a simple concept, especially in hard times with poorly functioning asset markets and uncertain valuations.
"You can have cyclical bear markets within bull markets, and with valuations stretched there is a risk of that," he warned.
There is a connection between public markets, and private valuations.
P/E ratios, which are used to gauge market sentiment and valuations, rise or fall based both on earnings and the price that investors are willing to pay for each dollar of that profit.
A. J. Maestas, the president of Navigate, a sports market research and valuation company, said he had projected that the Pac-10 deal would average $220 million, not $250 million, annually.
"I think the stale-pricing phenomenon is going to disappear as the funds become more able to deal with market timing and valuation problems.
Despite the availability of cheap financing for those big enough to tap the bond market, and attractive valuations, there are few mergers or acquisitions.
What is the case for buying REIT stocks? A. REIT's are in a particularly good spot today because investors are increasingly becoming more nervous about the broader market and questioning valuations.
