S&P 500

Since the bear market bottom on October 9, 2002, the S&P 500 is upabout 97%. The Nasdaq, which dropped a lot farther than the blue chip indexes during the bear market, has risen about 133%. But the real winners since the 2002 low have been the smallerstocks, with the S&P SmallCap 600 up about 157% and the S&P MidCap 400 up 144%. An almost full recovery!

Source: S&P Outlook

Precision Castparts / PCP

Bought 200 shares today in my virtual industrials sector fund @ 113.74

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Trades

Bought HRPT Properties Trust / HRP in financials sector fund.
considered value play, Yield % 7.0.

Personal computer

industry enjoyed a fourth consecutive year of growth in 2006, note that PC shipments in the United States increased a lackluster 3%, compared with hearty growth of about 17.6% in per unit shipments in the Asia-Pacific region, and even more robust 22.2% growth in Eastern Europe, LatinAmerica, and the Middle East. To expect overall growth continuing for a fifth year in 2007, with 11% total unit growth.
My picks :
Dell, International Business Machines, Apple.

listening now

dj sammy miss you daddy

have a good time!

Money Show in Las Vegas, May 14-17, 2007

Financials sector to overweight ?

I view the next move by the Fed is most likely a rate cut later this year, which will benefit the stocks in this rate-sensitive group. The banks and diversified financials , such as insurers and real estate investment trusts, have been having a tough year. Through April 17, the financials sector index has fallen behind, underperforming the S&P 500 index. Although the sector has appreciated, it’s the laggard of the 10 sector indices, rising only 0.7% while the “500” has gained 3.8%. In 2006, the financials sector index increased 16.2%, compared with a13.6% rise for the “500.” The subprime lending mess has put pressure on many stocks in the group recently. After energy, the financials sectorhas the lowest price-to-earnings ratio of all 10 sectors of the economy, at 12.7 times 2007 earnings. The powerful energy sector’s P/E can’t be beat at11.5 as of April 20. Price is one good reason why S&P says it’s time to consider banks again and the representative Sector SPDR-Financials (XLF). This sector makes up about 22% of the “500.”

Sentiment: Buy

XLF my top holding #4

Trades today

Bought ALL (Allstate), 300 shares , for financials sector fund.

Europe Blooms as

dollar weakness enhances european equity returns. European bourses have responded with gains of around 8.9% (in U.S. dollar terms) in the S&P Europe 350 index this year through April 17. In fact, the greenback has depreciated 3% vs. the euro and 2.6% vs. the pound sterling year-to-date, the S&P Europe 350’s 8.9% advance in U.S. dollars compares with a 6% local currency gain. While the greenback still accounts for 66% of global foreign reserves, the euro is fast becoming a more competitive reserve alternative with a 25% share. Here are European stocks that trade as ADRs or ADSs on a U.S. exchange, I believe are worth looking after:

BAB One of the largest airlines, British Airways operates out of one of theworld’s busiest airports, Heathrow, as well as nearby Gatwick.I think demand for international long-haul routes will continue to be strong in fiscal2008 aided by the strength of the pound sterling vs. the U.S. dollar,

Sentiment: Buy

EN Enel is Italy’s leading company in the generation, transmission, distribution,and supply of electricity. Note, the company’s solid and above-peer annual dividend yield of 5.1%, as well as its relatively strong balance sheet. Enel’s balance sheet has allowed the company to aggressively expand its operations outside its core market. For example, it recently announced several dealsin Russia.

Sentiment: Buy

Warren Buffett!

Warren Buffett sticks to his investing philosophy. If you run a screen based on Buffett’s six investment criteria, here are:

Free cash flow (net income aftertaxes, plus depreciation and amortization,less capital expenditures) of at least $50 million

Net margins of at least 15%

Return of equity of at least 15% for each of the past three years and the most recently reported quarter.

A dollar’s worth of retained earnings generating at least a dollar of shareholder value for the past five years

Overpriced stocks are removed by comparing estimated discounted future cash flow five years from now with the current price.

Only stocks with a market capitalization of at least $500 million are included.Simply so!

The club dedicated to studying and applying the investing principles developed by Warren Buffett.

here at marketocracy