John Pitera's Market Laboratory Message Board

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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Stoctrash who wrote (6085)	5/13/2002 1:46:37 PM
From: John Pitera	Read Replies (2) of 33421

Hi Fred, I think the weaker US Dollar is a major reason for the strength of the multinational consumer nondurable stocks such as MCD, PG, KO, G the past several months. These companies get on average 50 to 60% of their revenues from overseas, especially europe. With the Weaker USD and the prospect of a further fall in the USD, the earnings that are converted from foreign currencies back into dollars is a larger amount. these charts take longer to come up than I would like but thecapitalmarkets.com That and the fact that sales have stagnated for the past few years are major revenue and earnings drivers for these stocks. It still does not address PE and valuation ratio's but for the money managers who have to put money to work somewhere, it gives them a fundamental underpinning of improved fundies to work with. John

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