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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Killswitch who wrote (14728)	10/8/2002 11:13:03 AM
From: Killswitch	Read Replies (2) \| Respond to of 19219

Yet another reason why the Fed model is useless right now. S&P 500 forward earnings still have to come WAY down from the current official projections. "Melanie Hollands CSFB: Companies w/ Underfunded Pension Liabs. 10/08/02 10:50 AM EDT Great piece from CSFB this morning, about companies with underfunded pension liabilities and the impact on performance. I will quote directly, from the piece. "Underfunded pension liabilities weighing on a select set of companies. As the bear market shows no sign of reprieve, investors have become increasingly alarmed that certain companies with pension assets that fall short of pension liabilities will need to bolster their pension assets with cash from operations. According to the CSFB study, 30 S&P 500 companies have pension underfunding of >25% of market cap, and 27 companies could have 2002 earnings negatively affected >10% as a result of pension issues. Underperformance looks likley to be more dramatic if the bear market continues. Now, if you add up the change in earnings estimates due to pension liabilities, (Table 3 in the CSFB report) then the total change in S&P 500 earnings for these 30 companies is $6.82 per share! Amazing."