On Dec. 21, 2012, I put $16 Million imaginary dollars in equal imaginary investments in 16 real energy companies; $8.0 in the Sustainable Energy space and $8.0 in the fossil fuel space. Excluding the value of dividends and transaction costs, but including the bankruptcy or crash of three companies in the sustainable energy space, and one company in the fossil fuel space.
The big news this month is the bankruptcy filing of Peabody Coal (Bloomberg, here). Continue reading
On Dec. 21, 2012, I put $16 Million imaginary dollars in equal imaginary investments in 16 real energy companies; $8.0 in the Sustainable Energy space and $8.0 in the fossil fuel space. Excluding the value of dividends and transaction costs, but including the bankruptcy or crash of three companies in the sustainable energy space.
As of the close of trading on October 21, 2015:
When stocks on the Shanghai Securities Exchange, the SSE, “corrected” on August 24, 2015, stocks in US and other markets followed. But nothing has fundamentally changed. None of the “Fundamentals” on any publicly traded U.S. or European companies have significantly changed (other than the Market Capitalization and Price Earnings ratios, which are, of course, functions of the stock price). Earnings per Share, EPS, the existence or lack thereof of what Warren Buffett calls a “moat,” debt to asset ratios, return on income, other financial ratios, were and remain unaffected by day to day fluctuations of stock price.
Charging Bull, by Arturo Di Monica
Stocks that were fundamentally bad investments on Friday, August 21, 2015 were likely to have been bad investments on Tuesday. August 25, 2015. Stocks that were good investments on Friday, August 21, 2015, were fundamentally somewhat better investments on Tuesday. August 25, 2015.
Dancing on the Charging Bull
The SSE Composite is not the S&P 500, or even the Dow. While there are frequent scandals involving insider trading and other financial improprieties, they are the exception and there are regulations designed to keep them that way. China, on the other hand …
The Shanghai Stock Exchange Composite index, the SSE Composite, looks kind of like the S&P 500. However, there are key differences between the indices.
On Dec. 21, 2012, I put $16 Million imaginary dollars in equal imaginary investments in 16 real energy companies; $8.0 in the Sustainable Energy space and $8.0 in the Fossil Fuel space. The pattern, clear by March, 2013, is the Sustainable Energy Space is outperforming and the Fossil Fuel space is underperforming the indices.
Excluding the value of dividends and transaction costs,
In December, 2012 I created two portfolios, a “Sustainable Energy” portfolio comprised of 8 stocks in the solar, LED lighting, wind and biofuel sectors, and a “Fossil Fuel” portfolio, comprised of 8 stocks in the coal, oil, and fracking sectors. The results, after seven months, as illustrated above:
The Sustainable Energy portfolio more than doubled: it is up 101.77%
The Reference Fossil Fuel portfolio is up 5.4%
The Dow Jones Industrial Average is up 18.75%
The S&P 500 is up 18.6%.
The Sustainable Energy portfolio has significantly outperformed the Dow Jones Industrials and the S&P 500 and the Fossil Fuel portfolio.
These data are summarized in table 1 and below. Continue reading
Hot on the heels of the December 21, 2012 launch of the Popular Logistics Virtual Portfolio in Sustainable Energy, here, up 22.36%, I am announcing the launch of the Popular Logistics Virtual Portfolio in Information Technology. Roughly $1.0 million in Apple, Google, HP, IBM, Intel, Microsoft, and Oracle.(Their investor relations pages are Apple, Google, HP, IBM, Intel, Microsoft, and Oracle.)
| Tech Virtual Portfolio | ||||
| Item | Stock | Price | Shares | Total |
| 1 | Apple | $446 | 2,242 | $1,000,000 |
| 2 | $795 | 1,258 | $1,000,000 | |
| 3 | HP | $17 | 59,559 | $1,000,000 |
| 4 | IBM | $198 | 5,051 | $1,000,000 |
| 5 | Intel | $20 | 50,000 | $1,000,000 |
| 6 | Microsoft | $27 | 37,037 | $1,000,000 |
| 7 | Oracle | $24 | 41,667 | $1,000,000 |
| total | $7,000,000 | |||
| Table 1. Acquisitions, Start of Business, 2/22/13 | ||||
Generally speaking, here’s what I expect:
These are in table 2, below
Apple, if it can be compared to Google, IBM, Intel, Microsoft, and Oracle, should be priced at 665 per share. This analysis is simply based on Stock Price, Earnings per Share (EPS) and the Price Earnings ratio. or P/E. The average P/E of these companies is 15.08. If Apple’s stock was 15.08 times earnings, it would be 665. If you take Apple out of the mix, the average P/E becomes 16.01. At 16.01 times earnings, Apple’s stock price would be 705. And if priced like Google, $1077. Continue reading