Economic: USA – Inflation
Inflation has been subdued for over a decade globally providing a welcome relief to consumers and frustrating central bankers. It appears that recent increases in inflation in the U.S. are about to frustrate global central bankers but, for an entirely different reason.
Merger Candidate Brief (Hunters & Hunted)
Currently, 20.2% of the overall market has an elevated probability of being involved in some level of merger, acquisition or breakup activity. This is a 1.2-point increase over the previous report. Approximately, half (54%) of the activity is expected in SmallCap alone, the other half is split between MidCap at 24% and LargeCap at 21%.
Stock Consideration Change Report
Buy/Buy Watch increases to 14% while Sell/Sell Watch drops to 30% providing slight relief to elevated expectations.
Stock Fair Value Changes
AIN, BRK/B, KMT and OFIX all earn increase in Fair Value while ASIX, BRKS, CAH, CVCO, INTL move down.
Stock Fair Value Report – August
Overvaluation pressures continued moving forward predominately in LargeCap stocks gaining 7.9 points, followed by SmallCap gaining 4.9 points, while MidCap remained nearly flat. The movements are interesting because there is a move to higher valuations in Buy classified stocks and Hold stocks while Sell stocks are exhibiting a move back to relative fair value. This is the preferred direction for all groups, but there are a handful of sectors and industry groups that are extremely overvalued. See the full report at: Client Service > World Markets > Americas > USA Stock Fair Value Report