Did the matador kill the Bull?
Boy, isn't that always the question. Are the Big Boyz finally dead?
Well, after entering some 5k data elements in a spread sheet, I think not. Without much fanfair, the top dirty dozen by market cap at 12/31 increased 8.6% vs. 8.2% for the Index. That hardly constitutes being dead.
More interesting, is that these companies, the top 66 by market cap (or in the DJIA) went from an EPS of an average of .56 in 9803 to .71 in 9903. Considering that these are supposed to be turtles, that is a pretty significant increase. Further, the 15% estimated increase from this quarter this year vs. last year is significant. The third quarter is even more entertaining with an average of .47 last year vs. the proposed .64 this year. That is an eye-popping 36% increase.
No, the facts state that the Bull is going to gore the matador! No wonder the fed is concerned; they see the the blow-off coming!
So, I've run all these puppies through the FA scoring system and come up with (Lord, forgive me) the top ten Buy and Hold candidates for the next six months. They are: FTU, INTC, MWD, MRK, ORCL, TWX, ALL, DELL, FNM and UTX. BWDIK; but, I've captured Friday's closing prices and will provide periodic updates. So, we get 40% financials, 30% tech, 10% drugs, 10% industrial cyclicals, and 10% services.
An interesting mixture!
TB |
