Raising S&P Price Earnings Multiples 73%

posted on 12/10/2010 11:27:31 AM
Strong Buy
Strong Buy
 

Dear Contra_Folk, We are watching index ETF's, SPY, and mutual closet index lemmings following
the long abused index constituent switcheroo - used often to improve future performance, and thus
includes naturally more winners and less of the losers in the S&P index, and that helps to cover
up charts that, well..., go off the charts.   

So with the upcoming Re-balancing Act of Dec 17th, 2010 we have taken the above positions
into next week with taps and nods from the previously mentioned media tippers onion members,
stock jockey greats such as the money-making insiders of the Salt & Peppers Index Inclusion
Committee, and don't forget BS's Kramer - who now gets an earful, as we strongly suspected a
while ago, after noticing Gmen induced price action(s) on his recommendations likely from the
Fedsury's PPT (Market Regulatory & Oversight Committee) and how crap sometimes does
float higher.   

Answer: Change the rules ever again, and exit a couple of 10 P/E's issues and add two
                 70 P|E's into the S&P Index - and shake.Contra_Man

S&P 500 INDEX - December 17, 2010

-----------COMPANY         GICS ECONOMIC SECTOR   GICS SUB-INDUSTRY-----
ADDED   Cablevision     Consumer Discretionary Cable & SatelliteSystems-----
        F5 Networks     Information Technology Communications Equipment-----
        Netflix         Consumer Discretionary Internet Retail-------------
        Newfield        Energy                 Oil & Gas Exploration
DELETED King            Health Care            Pharmaceuticals
        The New York    Consumer Discretionary PublishingTimes
        Office Depot    Consumer Discretionary Specialty Stores
        Eastman Kodak   Consumer Discretionary Photographic Products

NetFlex Ratio:

 

 

Price Ratios
Company Industry S&P 500
Current P/E Ratio 72.40 89.40 17.60
P/E Ratio 5-Year High 47.30 67.70
P/E Ratio 5-Year Low 13.60 14.80
Price/Sales Ratio 4.96 3.08 1.25
Price/Book Value 52.01 21.80 2.12
Price/Cash Flow Ratio 22.10 21.60 10.50

Pro-V F5:

Price Ratios
Company Industry S&P 500
Current P/E Ratio 74.70 229.60 17.60
P/E Ratio 5-Year High 67.70
P/E Ratio 5-Year Low 14.80
Price/Sales Ratio 12.73 2.09 1.25
Price/Book Value 11.19 3.11 2.12
Price/Cash Flow Ratio 64.20 27.60 10.50
Advertisements

About ContraManFund

Fictional (maybe not if you are an accredited investor) trading of a long/short contrarian-driven investment model portfolio based upon current economic environments and counter-intuitive trends. Legal Disclaimer The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions. NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES. The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility. Please consult your own investment advisor before making any investments anywhere, and always do your own due diligence before undertaking any individual investment.
This entry was posted in Business, Economics, Investment Finance and tagged , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s