Stock: Consideration Change Report: U.S.
Best Buy, Berkshire Hathaway, DST Systems and Nobel Energy move into SELL WATCH. Energen becomes SELL consideration. eHealth moves to BUY consideration while Essex Property gets a BUY WATCH consideration.
Stock: Fair Value Report: Changes: U.S.
AET, EV, FARO, GNCMA, KNX, MKTX, OFG, PJC, PSB, TGT, TTEK and VVI all receive changes in fair value. No changes in consideration classification due to Fv changes.
Portfolio: U.S. Sector Only: LargeCap
The portfolio described in this report is designed to provide a market exposure according to the relative fair valuation of each sector within the LargeCap market. Sectors that are currently the most overvalued are reduced in allocation in proportion to the degree of overvaluation while sectors that are the most undervalued will see an increase in allocation in proportion to the degree of undervaluation. This is done to place investments in the area of highest probability in improving the portfolio.
Mergers & Acquisitions: U.S.
Over the past several decades we have watched a dramatic increase in mergers and acquisitions. We wondered if there was a stock based valuation rationale behind mergers that indicated the probability that a company would be involved in a merger within a reasonable period of time. While we do not have a clear signal that our valuation model is a crystal ball, we have noticed a higher frequency of M&A activity amongst stocks we have categorized as A+ in the Merger, Acquisition, Buyout Factor (MAB) calculation.
Portfolio: U.S. Stock Only
The U.S. Stock Only portfolio has a single stock that has reached overvaluation, ArcBest. The company is a SmallCap aspirational stock that is probably best known by the transportation company by the name ABF Transport. ArcBest is considered an Industrial stock in the Transportation industry. The stock was added to the portfolio in 2017 and has grown considerably generating a return on 49.9%.