Katelynn's Report

Katelynn's Report

(US Market)


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LCD (Low Current Difference)

LCD is calculated through equation (52wk Low - Current Price) / Current Price. It monitors how far current price is away from 52-week (1 year) low. LCD is a number between 0 and -1. Briefly, LCD equal to -0.2 means a stock will lose 20% of its current value, if it goes down to 52-week low. As shown below, LCD itself has limited use, but can be very informative when combined with performance monitor

Example 1: Apple Inc. (NASDAQ:AAPL) has a LCD of -0.2 as the end of Oct 23th 2015. This means if the stock price goes down to 52-week low (as recorded on Oct 23th 2015), there will be 20% loss on your investment in AAPL.



In this example, the performance monitor at industry level shows 24%, which means 24% of stocks in the same industry ("Computer Manufacturing") will lose more than AAPL if they go down to 52-week low. In another word, AAPL is far away from 1 year low, compared with majority (1 - 24%) of industry peers. Without considering other covariates, this single piece of information suggests it is probably not a good time to invest in AAPL (as of Oct 23th 2015), if you are going to buy a stock in the same industry.