Book Description: Nicholas Molodovsky, 1947. 4to - over 9¾ - 12" tall. Softcover, Red Card Stock Cover with black lettering, Second Printing, June, 1947. Book Condition: Very good, two fade spots on the cover (see photo), previous owner name in pen on top cover, bumping to corners, slight wear to edges, 1/2" red mark on title page, pages are clean and free of marks, pages clean, bright and no marks. Pages show slightest uniform tanning, but barely noticable. Extremely scarce copy of this Nicholas Molodovsky (former editor of Financial Analyst Journal) title. Includes pull out charts which appear as new. 114 pages.
Status: SOLD 25 March 2011 to Private Collector in CA.
About Molodovski:
Nicholas Molodovski may be best known for the "Molodovski Effect," which deals PE Ratios. Assuming that a High PE stock is a Growth Stock may be fatal. The problem with this assumption is that the "E" component may be depressed as the earnings are at a low point in the economic cycle. So what you have in this case is a cyclical stock, which may not be a growth stock at all. This misleading High PE is known as the "Molodovsky Effect", named after Nicholas Molodovsky, who discussed this issue in his article "A Theory of Price Earnings Ratios" in the Analysts Journal (1953).
The CFA Institute has named an award in Molodovski's honor and it is still presented periodically to those individuals who have made outstanding contributions of such significance as to change the direction of the profession and to raise it to higher standards of accomplishments. Nicholas Molodovski was the first to receive this award in 1968.
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