How Money Smart are you?

money smark middle schoolersAre you joining the fun Monday at the Money Smart Middle Schoolers’ event?  Did you know we have a Money Smart Hot Topic? That’s right! It’s full of information on money management and it has a fun page just for students. Play the games and take the quizzes to see just how Money Smart you are!

Join Morningstar Investments for Money Smart Week 2015

money smark week 2015Money Smart Week training for Morningstar Investment Research Center. Learn how to use Morningstar Investment Research Center, available at the LVCCLD Virtual Library, free with your library card.

On Friday, April 24th at 12 PM Central.  (9 a.m. PDT)

They’ll focus on navigating the database, using the screening and portfolio analysis tools, and where to find helpful information.

Login to the webinar and call in to our teleconference information is listed below.

Go to
Call in to listen: 866-844-9418
Access Code: 745 931 533
Password: Mirc15

Future Upcoming Schedule of Events
Financial Literacy Series webinars:

July 22: 5 Keys to Retirement Investing
October 21: Stock Valuation

ValueLine Has a New Look! Take a quick tour of the new site.

Value Line 1312005_INST_indigo_art_v1_0launched a new interface on Thursday. A few tips about the new service:

  • Looking for Standard Industrial Information? Find it by hovering over the far right edge of the screen (where Try It is located on the picture to the left) a menu slides open which contains links. Select a link and it jumps down the page to where it is located. The other option is simple scroll down the page to the section you are looking for.
  • Need help understanding all the financial terms and what they mean? Go to the Help section and learn about them.




Finding Undervalued Stocks

The Training Corner | by Lars Wasvick, Associate Product Manager

The Stock Screener on Morningstar Investment Research Center is a very powerful tool. You can be incredibly specific with your criteria, from operating income growth to asset turnover and everything in between. However, with one simple screen, you can find a list of undervalued stocks in just a few clicks.

You can screen for undervalued stocks using our price/fair value measurement. Let’s step back and define our terms: Fair value is an estimate of what a particular stock is worth. At Morningstar, our stock analysts determine the prices they think stocks on their coverage lists should be trading at based on the intrinsic value of the company and its projected future cash flows.

Where an analyst thinks a stock should be trading and the actual price at which a company trades, however, can be miles apart. To measure this difference between where a stock is trading and its fair value, we have the price/fair value calculation. Basically, it is the price divided by the fair value estimate.

Since equal prices would give us an answer of 1, we know that anything with a price/fair value below 1 is undervalued, and anything above 1 is overvalued. To screen for this, select Price/Fair Value from the dropdown menu. Set the condition to less than, and enter 1 as the value.

On the results page you will see all the stocks that our analysts think are undervalued. To see the ratios, change the view from Snapshot to Morningstar Ratings at the top of the screen. Now you have a list to sort to see the most and least undervalued stocks. From there I suggest visiting the stocks’ data pages and reading the analyst’s report to get his or her full opinion.

For more helpful tips on the new features to Morningstar Investment Research Center, or for an overview on the database, please join us for training April 7 at 11 a.m. Central time. Visit the Client Site to attend, or e-mail for further details.

Most Similar Funds

The Training Corner | by Lars Wasvick, Associate Product Manager of Morningstar

Like any product on the market, if it’s good, a lot of people will buy it. With limited production, that product could potentially sell out. The same principle goes for mutual funds. Oftentimes fund managers will close and reopen their funds, sometimes to all investors, and sometimes to new investors. It depends on the fund company and the assets they have under management. What can you do if there’s a closed fund that you want to invest in?

Turn to Morningstar Investment Research Centers Most Similar Funds Tool. This tool allows you to enter in a mutual fund (like that closed fund you have your eye on) and find the top 50 funds with the closest characteristics. You can also view a number of figures to help you select which fund or funds from that list you’d like to research further.

You can access the tool from the homepage under the Funds heading, or on the left side of any Fund page. To run the search, just enter in the ticker symbol or the name of the fund you are targeting. The tool will search the database for similar funds, and return them for you.

The default screen displays the Morningstar Category and Overall Similarity number. However, you can change the view in the dropdown menu to see how the funds compare in performance, risk, asset allocation, and more. For example, if you are looking for funds with similar asset allocation, change the view and you will get a list of the funds’ positions in cash, equity, bond, and other. This makes it really easy to find comparable investments.

Another nice tool feature is that it links up with the Fund Compare tool. So, by checking off on two of the funds from the list, and clicking the “Go” button at the bottom of the page, you can look at those funds side by side to help you see their differences and compare things like investment style, ratings, and performance.