Thursday, September 7, 2006 - PowerPoint PPT Presentation

Loading...

PPT – Thursday, September 7, 2006 PowerPoint presentation | free to view - id: 1afe4-YzNiM



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Thursday, September 7, 2006

Description:

An economy still showing this type of growth could make it ... Source: Yahoo Finance. Economic Committee Report. The Truman Tracy Memorial Investment Fund ... – PowerPoint PPT presentation

Number of Views:37
Avg rating:3.0/5.0
Slides: 25
Provided by: gregoryp
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Thursday, September 7, 2006


1
Thursday, September 7, 2006
Presented by Joe Muelleman
2
Past Weeks Major News
  • September 6 According to a Labor Department
    report, wages rose at an annual rate of 4.9
    percent in the second quarter, above the 4.2
    percent the agency estimated.
  • Sept. 6 A report from the Institute for Supply
    Management showed that the services sector grew
    at a faster pace in August than economists
    forecast.
  • An economy still showing this type of growth
    could make it easier for the Fed to justify a
    rate hike to fight inflation. The central bank
    left rates unchanged at its last meeting after a
    string of 17 straight increases its next meeting
    is Sept. 20.
  • Sept. 5 Intel Corp. announces 10,500 jobs will
    be cut by mid-2007, which will result in an
    estimated savings of 3 billion annually by 2008.
  • Sept. 5 Bill Ford is replaced by Boeings Alan
    Mulally as the CEO of Ford Motor Company.

3
Federal Reserve Bank
  • Federal Reserve Maintained Rate on August 8, 2006
  • Economic growth slowing
  • Cooling housing market
  • Lagging effects of High Interest Rates and Fuel
    Costs
  • Inflation pressure likely to moderate over time
    rate should remain steady

4
Federal Funds Rate
5
Risk Free Treasury Bill Rates
Source Yahoo Finance
6
Risk Free Treasury Bill Rates
  • Recommendation
  • 3 Month Maturity rate of 4.83 as Risk Free Rate
    of Return

7
International Markets
  • Weak U.S. dollar from May to September
  • (Demand
  • The interest rates in Europe and China are
    expected to increase again
  • In June, 8.4 billion was withdrawn from mutual
    funds
  • Better stock performance has been observed in
    Asia and Europe

8
Exchange Rates
9
Stock Index - Asia
N225 vs. SP 500
HSI vs. SP 500
BSESN vs. SP 500
10
Stock Index - Europe
FTSE V.S. SP 500
FCHI V.S. SP 500
11
Consumer Staples Industry
  • Market Cap 2575.3B
  • P/E 25.14
  • ROE 16.73
  • Dividend Yield 2.19
  • Long Term Debt to Equity1.17
  • Price to Book Value -.01
  • Net Profit Margin 6.83
  • Price to Free Cash Flow 72.72

12
Consumer Staples Industry
  • Major Components
  • Auto Manufacturers
  • Cigarettes
  • Food
  • Electronic Equipment

13
Services Industry
  • Market Cap 2925.6B
  • P/E 25.98
  • ROE 14.81
  • Dividend Yield 1.33
  • Long Term Debt to Equity 1.28
  • Price to Book value 6.48
  • Net Profit Margin 5.7
  • Price to Free Cash Flow 79.36

14
Services Industry
  • Major Components
  • Discount Variety Stores
  • Entertainment
  • Business Services
  • Air Delivery Freight Services
  • Home Improvement Stores
  • Restaurants

15
Financial Industry
  • Market Cap 5461B
  • P/E 13.9
  • ROE16.27
  • Dividend Yield 2.62
  • Long Term Debt to Equity 3.47
  • Price to book value 2.82
  • Net profit margin 12.76
  • Price to free cash flow -41.61

16
Financial Industry
  • Major Components
  • Money Center Banks
  • Foreign Money Center Banks
  • Property Casualty Insurance
  • Credit Services
  • Savings Loans

17
Utilities Industry
  • Market Cap 948.9B
  • P/E 33.97
  • ROE 16.01
  • Dividend Yield 4.51
  • Long Term Debt to Equity 2.31
  • Price to Book Value 2.72
  • Net Profit Margin 9.54
  • Price to Free Cash Flow -64.36

18
Utilities Industry
  • Major Components
  • Electric Utilities
  • Foreign Utilities
  • Gas Utilities
  • Water Utilities

19
Healthcare Industry
  • Market Cap 2566.1B
  • P/E 46.37
  • ROE 14.63
  • Dividend Yield 1.62
  • Long Term Debt to Equity 0.45
  • Price to Book Value 45.03
  • Net Profit Margin 11.36
  • Price to Free Cash Flow 72.3

20
Healthcare Industry
  • Major Components
  • Drug Manufacturers
  • Biotechnology
  • Medical Instruments Supplies
  • Health Care Plans

21
  • Health care spending is currently 16 of GDP
  • This number is expected to rise as the population
    ages and more expensive drugs and devices are
    developed

22
DJ US Health Care Index (June-Aug)
  • Dow Jones Health Care index is up 3.3 for the
    past year.
  • Best performing industry subsections are
    pharmaceuticals and medical supplies up 7.3 and
    8.46 for the past year, respectively.
  • Biotech stocks have been more volatile, and are
    down 1.96 in the past year.

23
Technology Industry
  • Market Cap 5327.8B
  • P/E 28.48
  • ROE15.90
  • Dividend Yield 1.97
  • Long Term Debt to Equity 0.63
  • Price to book value 5.24
  • Net profit margin 10.76
  • Price to free cash flow 115.19

24
Technology Industry
  • Major Components
  • Communication Equipment
  • Foreign Telecom Services
  • Wireless Communications
  • Application Software
  • Semiconductors
  • Computer Systems
About PowerShow.com