Stock Fair Value Report October
Outside of Consumer Discretionary the remaining sectors are producing valuations within normal ranges. Only two sectors reside at Cautionary levels, Energy at 129.8% Fv and Information Technology at 124.9% Fv. Energy has made a significant move over the past 24 months from undervaluation to the high ranges of normal.
Economics – Median Household Income, Useful?
Just when we thought that political controversy would not enter statistics, we are proven wrong. The rhetoric surrounding median household income this week should receive an award for how to report a simple number, in the most complex manner. The amount of information provided has been overwhelming, but in each case very selective and possibly, misleading.
Inspire Acquires Sonic
Inspire has agreed to pay $43.50/share cash for the company. Did the shareholders get enough?
USA Model Stock Portfolio
VF Corporation, Ciena, C.H. Robinson and Nordstrom all move out as Expedia, Starbucks and Goodyear move in.
Investment Strategy Today
S&P makes changes to new Communication Services sector (old Telecommunication Services), 23 stocks move, changes sector from value to growth, dividend yield from 1.1% to 6%, Comm sector becomes 5th largest, Abercrombie & Fitch, Chesapeake Energy, Cloud Peak and Lam Research earn Buy consideration while Cable One, FutureFuel, UnitedContinental and Viad become Sell considerations. Micron Tech drops in fair value but remains a Sell consideration.