Seeking Alpha
View as an RSS Feed

Michael Krause  

View Michael Krause's Comments BY TICKER:
Latest  |  Highest rated
  • The Problem With ETFs: Indexing's Central Paradox [View article]
    Hi bigmoney, I couldn't agree more. The kind of fundamental analysis of ETFs you describe of is *exactly* what we do on ETF Research Center. I very much believe "it's an index-picker's market."
    Sep 17, 2010. 09:30 AM | Likes Like |Link to Comment
  • Two Signs That Imply Emerging Markets Are Getting Overheated [View article]
    Hi P.I.I.
    Sure thing; I've posted the figures you requested to my Instablog (so I could include the charts) for EWX, DGS, HAO and BRF (SCIN and INXX do not have sufficient history to look at capital flows). Increases in shares outstanding ranged from 3-79%, but short interest was minimal for all of them.

    From a fundamental perspective however the funds are very different in terms of sector allocation, profitability of the underlying constituents and valuations, underscoring Atkins' point about not lumping all emerging markets together.

    Hope this is at least somewhat helpful. Cheers...
    Sep 10, 2010. 02:13 AM | 1 Like Like |Link to Comment
  • Two Signs That Imply Emerging Markets Are Getting Overheated [View article]
    You'll get no argument here that emerging economies are in much better shape. But as user 466637 points out GDP and the stock market are different beasts. Besides valuations, remember S&P500 (SPY) firms derive nearly half of sales from abroad, including a strong presence in emerging markets, while emg mkt firms are often driven by exports to US & Europe (which is why "de-coupling" is a myth).

    For what it's worth, stocks in the iShares FTSE/Xinhua China 25 Fund (FXI) are collectively trading at 12.8x 2010E EPS and 1.9x book value. 46% of assets in FXI are Chinese banks, with indeterminate earnings quality (I have no special insights but with 100%+ loan growth, a bit of skepticism seems healthy).

    None of this is meant to diminish the achievements of emg mkts; we're just trying to determine the best way for investors to make money from these trends, which is not necessarily via emerging market stocks.
    Sep 9, 2010. 11:46 AM | 2 Likes Like |Link to Comment
  • S&P 500 Earnings Scorecard by Sector – Q2 2010 [View article]
    Hi tweedn, Current expectations for SPY are for Sales and EPS of $97.71 (+9.5%) and $8.17 (+35.7%), respectively. Cheers...
    Jul 23, 2010. 05:00 PM | Likes Like |Link to Comment
  • Interactive Q&A: Jeffrey L. Feldman, Creator of HealthShares and Founder and Chairman of XShares Group LLC [View article]
    Hi Jeff,

    You mention above that few people are capable of picking winning stocks in biotech, with which I agree. But I wonder about the ability of investors to pick winning theraputical areas, around which the HealthShares are organized.

    If that's the case, then wouldn't it make sense to simply invest in a broad Biotech ETF (i.e., a fund that is not skewed to "Big Pharma")? Or do you think some some theraputical areas look more promising than others?

    Best regards,
    Michael Krause
    Apr 11, 2007. 01:05 AM | Likes Like |Link to Comment