Investment Decision Tools for Portfolio Management
The Investment Strategy Network (ISN) web product is an investment tool designed to assist in the decision-making process of both private and institutional investors.
The Investment Strategy Network (ISN) web product is an investment tool designed to assist in the decision-making process of both private and institutional investors.
Most investors have some general idea of what economic factors affect a company. The more difficult question is by how much they affect the company. Or, what if several significant factors are moving in opposite directions – what is the net impact? How can one be sure that all the factors have been considered?
A user of the ISN service can either approach the challenge by looking at various stocks to see what the economic influences are telling about the company share price, or he could start with the economic development to see which stocks should be influenced and by how much.
The goal of ISN is to provide the tools to analyze the
external influences upon the company as represented by economic indicators.
What a difference 30 days can make! Investor’s moved from an optimistic 6.2 point position above fair value neutral, to a 3.8 point position on the pessimistic side. Given the fear that is in the marketplace and predominately negative views on economic growth, I am surprised it is not further down on the pessimistic side of fair value.
Dorman Products and Sally Beauty moved to BUY while Visteon is no longer a SELL.
Stock prices have moved down from their highs, but markets remain optimistic, even after considering the impact of the virus from China and a logistic disappointment in Iowa. The optimism is well placed, but may be slightly ahead of the market. Currently, 19.7% of the market is undervalued, but only 7.6% of the companies currently have strong enough fundamentals to be considered a BUY.
Markets have reacted to the scare of the Novel Coronavirus (2019-CoV) with very little data. So far, 2019-CoV appears to be less harmful than either MERS or SARS. If we peel away the swings that appear to be created by quick reactions to the virus and concentrate on factual data such as earnings and revenues, we can see a picture where market price levels are moving slightly ahead of earnings support.
Cable ONE and Delta Air Lines increase in fair value while PNC Financial and UnitedHealth Group move lower.