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  • Free Cash Flow Analysis of the S&P 500 Index - Part #1 3 comments
    Mar 21, 2010 10:48 AM | about stocks: SPY, QQQ, AAPL, MSFT, WU, IBM, SHW, COH

    Seeking Alpha is the place that I have decided to do my Pro-Bono work and I will concentrate most of my writings from now on exclusively on the “Power of Free Cash Flow”.  As part of my giving back something to the field that has been very good to me, I have decided to disclose some of the tools I use to pick winner and more importantly to avoid losers.  The motto that I base all my work on is “Capital Appreciation through Capital Preservation”.  This simply means that I only look for appreciation when I am quite sure that I have my preservation part down or in other words when it is “safe” to enter the markets.  My philosophy is to either go long in equities or to go to cash when nothing is attractive to buy.  I use cash as my hedging tool and do not try to get fancy with options or shorting. 

    I also keep very close attention to macro-economic events and pay very close attention to what Warren Buffett is doing and more importantly in what he is saying.  In 2008 when Mr. Buffett said that we were in an “Economic Pearl Harbor”, I went to 100% cash without blinking an eye.  So though my work is, as you will see below, quite quantitative, I never try to “catch a falling knife” or “step in front of a moving train”.  Where there is uncertainty I just stay away (currently health care stocks) and where there is tremendous opportunity, that the market has overlooked, I pounce.  Investing is like life, you want live in the best neighborhoods and drive the best cars and avoid traveling through high crime areas or walking in streets where there is a high probability of getting mugged.  I would rather be by the pool in Palm Springs then in the desert of Iraq, if I have the choice.  The markets operate in the same way.

    But with all this data bombarding you every day from multiple sources, how on earth can you figure out what is the right thing to invest in?  The answer is, that it is not easy to do so and that you need to work very hard and more importantly you need the right tools to do so.  The ultimate tool to help the investor is a thing called Free Cash Flow.  If you look at the great investors of the present and past and if you dig deep into how they operate you will always see the words “Free Cash Flow” show up.  Bruce Berkowitz, Warren Buffett and many growth investors have relied on Free Cash Flow as their ultimate tool for decades.

    Not to get too technical here but Free Cash Flow = Cash Flow from Operations – Capital Expenditures

    There are a few ways to use Free Cash Flow that can help bring it down to an easily understandable level.

    One is Price to Free Cash Flow = Market Capitalization/Free Cash Flow

    For those interested I did a 58 year backtest of the DJIA from 1950-2007 that will show you how I use it. You can download my backtest by clicking here;

    https://mycroftresearch.com/uploads/Backtest_1950-2007_Mycroft_Research_LLC.pdf

    Price to free cash flow is a great tool when you are analyzing one stock at a time but when you are analyzing an ETF or in our case the S&P 500 I recommend using thisinstead, which is the inverse of PFCF;

    Free Cash Flow Yield = Free Cash Flow/Market Capitalization

    Price to free cash flow at times can give you results that can distort results, when analyzing a large group of stocks, as one stock could have a Price to Free Cash flow of 200 and the other could have one of just 3.  So Free Cash Flow Yield is best because it doesn’t give you wild swings in your results and basically tells you how much yield can one get in free cash flow at the stock’s current price and thus everything becomes simple and straightforward. Once you do one stock, then you can do the next 499 and get an accurate view of the index from a totally new angle.

    The following is a table where I have analyzed the S&P 500 both from an equal weighted and non-equal weighted point of view.  When analyzing financial stocks, since one cannot get accurate free cash flow comparisons from them I simply used Earnings Yield = Earnings/Market Capitalization or the inverse of the famous PE Ratio.

    Before posting the table I will just sum it up and then close.  The average yield from this analysis for the entire S&P 500 Index is 4.39% from an equally weighted point of view and 5.42% from a non equally weighted, so based on this analysis those that say that you should invest in the equally weighted versus non equally weighted (as S&P does it) are wrong by as much as 23% when taken from a relative point of view.

    By providing this you now have a benchmark to test your portfolio against. How is your portfolio doing on a FCF yield point of view vs. the S&P 500 Index?

    Part #2 of my free cash flow analysis of the S&P 500 will show everyone the power of FROIC. That will be in a separate article coming soon.  Here is the table and enjoy.

     

    Company Name Ticker FCFY WEIGHT WFCFY
    3M Company MMM 7.0% 0.56 3.92%
    Abbott Laboratories ABT 7.0% 0.79 5.53%
    Abercrombie & Fitch Company ANF 8.0% 0.04 0.32%
    Adobe Systems Inc. ADBE 5.0% 0.18 0.90%
    Advanced Micro Devices AMD 0.0% 0.05 0.00%
    AES Corporation AES -4.0% 0.07 -0.28%
    Aetna, Inc. AET 15.0% 0.14 2.10%
    Aflac, Inc. AFL 6.0% 0.24 1.44%
    Agilent Technologies, Inc. A 3.0% 0.11 0.33%
    Air Products and Chemicals, Inc. APD 1.0% 0.15 0.15%
    Airgas, Inc. ARG 6.0% 0.05 0.30%
    AK Steel Holding Corporation AKS -3.0% 0.02 -0.06%
    Akamai Technologies, Inc. AKAM 8.0% 0.05 0.40%
    Alcoa Inc. AA -2.0% 0.13 -0.26%
    Allegheny Energy, Inc. AYE -10.0% 0.04 -0.40%
    Allegheny Technologies Corp. ATI -5.0% 0.05 -0.25%
    Allergan, Inc. AGN 6.0% 0.19 1.14%
    Allstate Corporation ALL 5.0% 0.16 0.80%
    Altera Corp. ALTR 5.0% 0.07 0.35%
    Altria Group Inc. MO 8.0% 0.40 3.20%
    Amazon.com, Inc. AMZN 6.0% 0.43 2.58%
    Ameren Corporation AEE 5.0% 0.06 0.30%
    American Electric Power AEP -2.0% 0.16 -0.32%
    American Express Company AXP 5.0% 0.46 2.30%
    American International Group AIG -328.0% 0.04 -13.12%
    American Tower Corporation AMT 3.0% 0.17 0.51%
    Ameriprise Financial, Inc. AMP 7.0% 0.11 0.77%
    AmerisourceBergen Corporation ABC 11.0% 0.08 0.88%
    Amgen, Inc. AMGN 9.0% 0.56 5.04%
    Amphenol Corporation APH 7.0% 0.07 0.49%
    Anadarko Petroleum Corp. APC -1.0% 0.33 -0.33%
    Analog Devices, Inc. ADI 6.0% 0.08 0.48%
    Aon Corp. AON 2.0% 0.11 0.22%
    Apache Corporation APA 2.0% 0.33 0.66%
    Apartment Investment & Management AIV -184.0% 0.02 -3.68%
    Apollo Group, Inc. APOL 9.0% 0.08 0.72%
    Apple, Inc. AAPL 6.0% 1.92 11.52%
    Applied Materials AMAT 1.0% 0.16 0.16%
    Archer Daniels Midland Corporation ADM -5.0% 0.18 -0.90%
    Assurant, Inc. AIZ 12.0% 0.04 0.48%
    AT&T, Inc. T 12.0% 1.46 17.52%
    Autodesk, Inc. ADSK 2.0% 0.06 0.12%
    Automatic Data Processing ADP 7.0% 0.21 1.47%
    AutoNation, Inc. AN 10.0% 0.02 0.20%
    AutoZone, Inc. AZO 9.0% 0.05 0.45%
    AvalonBay Communities, Inc. AVB 6.0% 0.07 0.42%
    Avery Dennison Corp. AVY 12.0% 0.04 0.48%
    Avon Products AVP 4.0% 0.13 0.52%
    Baker Hughes Inc. BHI 1.0% 0.15 0.15%
    Ball Corporation BLL 7.0% 0.05 0.35%
    Bank of America Corporation BAC 4.0% 1.61 6.44%
    Bank of New York Mellon Corporation BK -3.0% 0.35 -1.05%
    Baxter International Inc. BAX 6.0% 0.34 2.04%
    BB&T Corporation BBT 4.0% 0.21 0.84%
    Becton, Dickinson and Company BDX 7.0% 0.18 1.26%
    Bed Bath & Beyond, Inc. BBBY 6.0% 0.11 0.66%
    Bemis Company, Inc. BMS 12.0% 0.03 0.36%
    Berkshire Hathaway BRK/B 3.0% 1.31 3.93%
    Best Buy Co., Inc. BBY 7.0% 0.13 0.91%
    Big Lots, Inc. BIG 10.0% 0.03 0.30%
    Biogen Idec, Inc. BIIB 6.0% 0.15 0.90%
    BJ Services Company BJS 2.0% 0.06 0.12%
    BMC Software, Inc. BMC 8.0% 0.07 0.56%
    Boeing Company BA 9.0% 0.49 4.41%
    Boston Properties, Inc. BXP 2.0% 0.10 0.20%
    Boston Scientific, Inc. BSX 4.0% 0.10 0.40%
    Bristol-Myers Squibb Company BMY 8.0% 0.42 3.36%
    Broadcom Corporation (NASDAQ:BRCM) BRCM 6.0% 0.14 0.84%
    Brown-Forman Corporation (NYSE:BF.B) BF.B 8.0% 0.06 0.48%
    C.R. Bard, Inc. BCR 7.0% 0.08 0.56%
    CA, Inc. CA 11.0% 0.09 0.99%
    Cabot Oil & Gas Corporation COG 1.0% 0.04 0.04%
    Cameron International Corporation CAM 4.0% 0.10 0.40%
    Campbell Soup Company CPB 7.0% 0.06 0.42%
    Capital One Financial Corporation COF 2.0% 0.17 0.34%
    Cardinal Health, Inc. CAH 15.0% 0.12 1.80%
    CareFusion Corp CFN 7.0% 0.04 0.28%
    Carnival Corporation CCL 0.0% 0.16 0.00%
    Caterpillar Inc. CAT 14.0% 0.35 4.90%
    CB Richard Ellis Group, Inc. CBG 0.0% 0.04 0.00%
    CBS Corporation (NYSE:CBS) CBS 8.0% 0.09 0.72%
    Celgene Corporation CELG 3.0% 0.28 0.84%
    CenterPoint Energy, Inc. CNP 13.0% 0.05 0.65%
    Centurytel, Inc. CTL 6.0% 0.10 0.60%
    Cephalon, Inc. CEPH 12.0% 0.05 0.60%
    CF Industries Holdings, Inc. CF 9.0% 0.04 0.36%
    CH Robinson Worldwide, Inc. CHRW 5.0% 0.09 0.45%
    Charles Schwab Corporation SCHW 4.0% 0.17 0.68%
    Chesapeake Energy Corp. CHK -15.0% 0.15 -2.25%
    Chevron Corporation CVX -2.0% 1.43 -2.86%
    Chubb Corporation CB 13.0% 0.17 2.21%
    Cigna Corporation CI 14.0% 0.09 1.26%
    Cincinnati Financial Corporation CINF 10.0% 0.05 0.50%
    Cintas Corporation CTAS 14.0% 0.03 0.42%
    Cisco Systems, Inc. CSCO 5.0% 1.44 7.20%
    Citigroup, Inc. C -2.0% 0.75 -1.50%
    Citrix Systems, Inc. CTXS 5.0% 0.08 0.40%
    Cliffs Natural Resources Inc. CLF 1.0% 0.08 0.08%
    Clorox Company CLX 7.0% 0.09 0.63%
    CME Group Inc CME 5.0% 0.20 1.00%
    CMS Energy Corporation CMS 2.0% 0.03 0.06%
    Coach, Inc. COH 9.0% 0.12 1.08%
    Coca-Cola Company KO 5.0% 1.19 5.95%
    Coca-Cola Enterprises Inc. CCE 6.0% 0.08 0.48%
    Cognizant Technology Solutions Corporation CTSH 4.0% 0.15 0.60%
    Colgate-Palmolive Company CL 7.0% 0.40 2.80%
    Comcast Corporation (NASDAQ:CMCSA) CMCSA 11.0% 0.48 5.28%
    Comerica Incorporated CMA 1.0% 0.05 0.05%
    Computer Sciences Corporation CSC 11.0% 0.08 0.88%
    Compuware Corporation CPWR 14.0% 0.02 0.28%
    ConAgra Foods, Inc. CAG 9.0% 0.11 0.99%
    ConocoPhillips COP -39.0% 0.74 -28.86%
    Consol Energy, Inc. CNX 0.0% 0.08 0.00%
    Consolidated Edison Company ED 2.0% 0.12 0.24%
    Constellation Brands Inc. (NYSE:STZ) STZ 7.0% 0.03 0.21%
    Constellation Energy Group, Inc. CEG 27.0% 0.07 1.89%
    Corning Inc. GLW 2.0% 0.28 0.56%
    Costco Wholesale Corporation COST 6.0% 0.26 1.56%
    Coventry Health Care, Inc. CVH 24.0% 0.04 0.96%
    CSX Corporation CSX 3.0% 0.19 0.57%
    Cummins, Inc. CMI 7.0% 0.11 0.77%
    CVS Caremark Corporation CVS 3.0% 0.47 1.41%
    D.R. Horton Incorporated DHI 14.0% 0.03 0.42%
    Danaher Corporation DHR 7.0% 0.19 1.33%
    Darden Restaurants, Inc. DRI 8.0% 0.06 0.48%
    Davita, Inc. DVA 6.0% 0.06 0.36%
    Dean Foods Company DF 19.0% 0.03 0.57%
    Deere & Company DE 3.0% 0.24 0.72%
    Dell, Inc. DELL 12.0% 0.24 2.88%
    Denbury Resources, Inc. DNR -19.0% 0.06 -1.14%
    DENTSPLY International, Inc. XRAY 6.0% 0.05 0.30%
    Devon Energy Corporation DVN 0.0% 0.28 0.00%
    DeVry, Inc. DV 6.0% 0.04 0.24%
    Diamond Offshore Drilling, Inc. DO 9.0% 0.06 0.54%
    DirectTV DTV 6.0% 0.31 1.86%
    Discover Financial Services DFS 17.0% 0.08 1.36%
    Discovery Communications DISC/A 6.0% 0.09 0.54%
    Dominion Resources, Inc. D 1.0% 0.23 0.23%
    Dover Corporation DOV 8.0% 0.08 0.64%
    Dow Chemical DOW 2.0% 0.33 0.66%
    Dr Pepper Snapple Group, Inc. DPS 7.0% 0.09 0.63%
    DTE Energy Holding Company DTE 11.0% 0.07 0.77%
    Duke Energy Corporation DUK -4.0% 0.21 -0.84%
    Dun & Bradstreet Corporation DNB 10.0% 0.04 0.40%
    E*Trade Financial Corporation ETFC -49.0% 0.02 -0.98%
    E.I. du Pont de Nemours & Company DD 11.0% 0.32 3.52%
    Eastman Chemical Company EMN 10.0% 0.04 0.40%
    Eastman Kodak Company EK -18.0% 0.02 -0.36%
    Eaton Corporation ETN 11.0% 0.12 1.32%
    eBay, Inc. EBAY 8.0% 0.29 2.32%
    Ecolab, Inc. ECL 5.0% 0.10 0.50%
    Edison International EIX -4.0% 0.11 -0.44%
    El Paso Corporation EP -11.0% 0.07 -0.77%
    Electronic Arts, Inc. ERTS 1.0% 0.06 0.06%
    Eli Lilly & Company LLY 9.0% 0.35 3.15%
    EMC Corporation EMC 8.0% 0.36 2.88%
    Emerson Electric Co. EMR 8.0% 0.35 2.80%
    Entergy Corporation ETR 17.0% 0.14 2.38%
    EOG Resources EOG -2.0% 0.22 -0.44%
    EQT Corp. EQT -4.0% 0.05 -0.20%
    Equifax, Inc. EFX 9.0% 0.04 0.36%
    Equity Residential EQR -2.0% 0.10 -0.20%
    Estee Lauder Companies EL 7.0% 0.07 0.49%
    Exelon Corporation EXC 10.0% 0.28 2.80%
    Expedia, Inc. EXPE 9.0% 0.05 0.45%
    Expeditors International of Washington, Inc. EXPD 4.0% 0.08 0.32%
    Express Scripts ESRX 6.0% 0.26 1.56%
    ExxonMobil Corporation XOM 2.0% 3.05 6.10%
    Family Dollar Stores, Inc. FDO 8.0% 0.05 0.40%
    Fastenal Company FAST 4.0% 0.06 0.24%
    Federated Investors, Inc. FII 8.0% 0.02 0.16%
    FedEx Corporation FDX 0.0% 0.28 0.00%
    Fifth Third Bancorp FITB -13.0% 0.10 -1.30%
    First Horizon National Corporation FHN 0.0% 0.03 0.00%
    First National Information FIS 8.0% 0.11 0.88%
    First Solar, Inc. FSLR 4.0% 0.05 0.20%
    FirstEnergy Corporation FE 2.0% 0.11 0.22%
    Fiserv, Inc. FISV 9.0% 0.07 0.63%
    FLIR Systems, Inc. FLIR 6.0% 0.04 0.24%
    Flowserve Corporation FLS 6.0% 0.06 0.36%
    Fluor Corporation FLR 9.0% 0.08 0.72%
    FMC Corporation FMC 3.0% 0.04 0.12%
    FMC Technologies, Inc. FTI 5.0% 0.07 0.35%
    Ford Motor Company F 18.0% 0.43 7.74%
    Forest Laboratories, Inc. FRX 11.0% 0.09 0.99%
    Fortune Brands, Inc. FO 11.0% 0.07 0.77%
    FPL Group FPL 10.0% 0.19 1.90%
    Franklin Resources BEN 4.0% 0.16 0.64%
    Freeport-McMoRan Copper & Gold FCX 9.0% 0.33 2.97%
    Frontier Communications Corporation FTR 20.0% 0.02 0.40%
    Gamestop Corporation GME 18.0% 0.03 0.54%
    Gannett Co., Inc. GCI 22.0% 0.04 0.88%
    Gap, Inc. GPS 9.0% 0.11 0.99%
    General Dynamics GD 9.0% 0.28 2.52%
    General Electric Company GE 9.0% 1.84 16.56%
    General Mills, Inc. GIS 8.0% 0.23 1.84%
    Genuine Parts Company GPC 11.0% 0.06 0.66%
    Genworth Financial, Inc. GNW -6.0% 0.08 -0.48%
    Genzyme Corporation GENZ 4.0% 0.14 0.56%
    Gilead Sciences, Inc. GILD 6.0% 0.41 2.46%
    Goldman Sachs Group, Inc. GS 3.0% 0.87 2.61%
    Goodrich Corporation GR 6.0% 0.08 0.48%
    Goodyear Tire & Rubber GT 18.0% 0.03 0.54%
    Google, Inc. GOOG 5.0% 1.30 6.50%
    H & R Block, Inc. HRB 15.0% 0.05 0.75%
    H.J. Heinz Company HNZ 10.0% 0.14 1.40%
    Halliburton Company HAL 2.0% 0.27 0.54%
    Harley-Davidson, Inc. HOG 7.0% 0.06 0.42%
    Harman International Industries, Inc. HAR 3.0% 0.03 0.09%
    Harris Corporation HRS 12.0% 0.06 0.72%
    Hartford Financial Services Group, Inc. HIG -9.0% 0.10 -0.90%
    Hasbro, Inc. HAS 3.0% 0.05 0.15%
    HCP, Inc. HCP 4.0% 0.09 0.36%
    Health Care REIT, Inc. HCN -4.0% 0.05 -0.20%
    Helmerich & Payne HP  2.0% 0.04 0.08%
    Hershey HSY 10.0% 0.07 0.70%
    Hess Corporation HES -5.0% 0.17 -0.85%
    Hewlett-Packard Company HPQ 8.0% 1.18 9.44%
    Home Depot, Inc. HD 8.0% 0.52 4.16%
    Honeywell International, Inc. HON 11.0% 0.31 3.41%
    Hormel Foods Corporation HRL 8.0% 0.03 0.24%
    Hospira, Inc. HSP 9.0% 0.09 0.81%
    Host Hotels & Resorts, Inc. HST -1.0% 0.08 -0.08%
    Hudson City Bancorp, Inc. HCBK 7.0% 0.06 0.42%
    Humana HUM 13.0% 0.08 1.04%
    Huntington Bancshares, Inc. HBAN -90.0% 0.04 -3.60%
    Illinois Tool Works, Inc. ITW 9.0% 0.17 1.53%
    Integrys Energy Group, Inc. TEG 34.0% 0.03 1.02%
    Intel Corporation INTC 6.0% 1.17 7.02%
    IntercontinentalExchange, Inc. ICE 6.0% 0.08 0.48%
    International Business Machines Corp IBM 10.0% 1.60 16.00%
    International Flavors & Fragrances IFF 7.0% 0.03 0.21%
    International Game Tech. IGT 6.0% 0.05 0.30%
    International Paper Co. IP 41.0% 0.11 4.51%
    Interpublic Group of Companies IPG 12.0% 0.04 0.48%
    Intuit INTU 8.0% 0.10 0.80%
    Intuitive Surgical, Inc. ISRG 2.0% 0.13 0.26%
    Invesco Ltd IVZ 3.0% 0.09 0.27%
    Iron Mountain, Inc. IRM 6.0% 0.05 0.30%
    ITT Corporation ITT 11.0% 0.09 0.99%
    J.C. Penney Company, Inc. JCP 13.0% 0.07 0.91%
    J.M. Smucker Co. SJM 7.0% 0.07 0.49%
    J.P. Morgan Chase & Co. JPM 8.0% 1.63 13.04%
    Jabil Circuit, Inc. JBL 14.0% 0.03 0.42%
    Jacobs Engineering Group JEC 11.0% 0.05 0.55%
    Janus Capital Group, Inc. JNS 7.0% 0.02 0.14%
    JDS Uniphase Corporation JDSU 3.0% 0.02 0.06%
    Johnson & Johnson JNJ 7.0% 1.71 11.97%
    Johnson Controls, Inc. JCI 7.0% 0.20 1.40%
    Juniper Networks, Inc. JNPR 4.0% 0.15 0.60%
    Kellogg Company K 6.0% 0.13 0.78%
    KeyCorp KEY -30.0% 0.06 -1.80%
    Kimberly-Clark Corporation KMB 10.0% 0.24 2.40%
    Kimco Realty Corporation KIM -2.0% 0.06 -0.12%
    King Pharmaceuticals, Inc. KG 14.0% 0.03 0.42%
    KLA-Tencor Corporation KLAC 7.0% 0.05 0.35%
    Kohl's Corporation KSS 9.0% 0.16 1.44%
    Kraft Foods, Inc. KFT 9.0% 0.49 4.41%
    Kroger Company KR 4.0% 0.14 0.56%
    L-3 Communications Holdings, Inc. LLL 12.0% 0.10 1.20%
    Laboratory Corporation of America Holdings LH 10.0% 0.08 0.80%
    Legg Mason, Inc. LM 16.0% 0.05 0.80%
    Leggett & Platt, Inc. LEG 17.0% 0.03 0.51%
    Lennar Corporation (NYSE:LEN) LEN -14.0% 0.03 -0.42%
    Leucadia National Corporation LUK -2.0% 0.05 -0.10%
    Lexmark International, Inc. LXK 6.0% 0.03 0.18%
    Life Technologies Corp LIFE 6.0% 0.09 0.54%
    Limited Brands, Inc. LTD 12.0% 0.06 0.72%
    Lincoln National Corp. LNC -6.0% 0.08 -0.48%
    Linear Technology LLTC 6.0% 0.06 0.36%
    Lockheed Martin Corporation LMT 8.0% 0.26 2.08%
    Loews Corporation L 4.0% 0.13 0.52%
    Lorillard, Inc. LO 9.0% 0.12 1.08%
    Lowe's Companies Inc. LOW 6.0% 0.35 2.10%
    LSI Corporation LSI 3.0% 0.04 0.12%
    M & T Bank Corporation MTB 4.0% 0.07 0.28%
    Macy's M 18.0% 0.09 1.62%
    Marathon Oil Corporation MRO -7.0% 0.22 -1.54%
    Marriott International, Inc. MAR 7.0% 0.07 0.49%
    Marsh & McLennan Companies MMC 3.0% 0.12 0.36%
    Marshall & Ilsley Corp. MI -62.0% 0.04 -2.48%
    Masco Corporation MAS 12.0% 0.05 0.60%
    Massey Energy Company MEE -6.0% 0.04 -0.24%
    MasterCard Incorporated MA 5.0% 0.22 1.10%
    Mattel, Inc. MAT 10.0% 0.08 0.80%
    McAfee, Inc. MFE 7.0% 0.06 0.42%
    McCormick & Company, Inc. (NYSE:MKC) MKC 7.0% 0.05 0.35%
    McDonald's Corporation MCD 6.0% 0.68 4.08%
    McGraw-Hill Companies, Inc. MHP 11.0% 0.11 1.21%
    McKesson, Inc. MCK 13.0% 0.16 2.08%
    Mead Johnson Nutrition Company MJN 4.0% 0.10 0.40%
    MeadWestvaco Corporation MWV 17.0% 0.04 0.68%
    Medco Health Solutions, Inc. MHS 11.0% 0.30 3.30%
    Medtronic, Inc. MDT 7.0% 0.47 3.29%
    MEMC Electronic Materials WFR -3.0% 0.03 -0.09%
    Merck & Co., Inc. MRK 2.0% 1.13 2.26%
    Meredith Corporation (NYSE:MDP) MDP 11.0% 0.01 0.11%
    MetroPCS Communications, Inc. PCS -12.0% 0.02 -0.24%
    Metropolitan Life Insurance Company MET -8.0% 0.33 -2.64%
    Microchip Technology, Inc. MCHP 7.0% 0.05 0.35%
    Micron Technology, Inc. MU 12.0% 0.08 0.96%
    Microsoft Corporation MSFT 7.0% 2.17 15.19%
    Millipore Corporation MIL 6.0% 0.06 0.36%
    Molex, Inc. (NASDAQ:MOLX) MOLX 4.0% 0.03 0.12%
    Molson Coors Brewing Company (NYSE:TAP) TAP 9.0% 0.06 0.54%
    Monsanto Company MON 0.0% 0.37 0.00%
    Monster Worldwide, Inc. MWW 0.0% 0.02 0.00%
    Moody's Corporation MCO 8.0% 0.06 0.48%
    Morgan Stanley MS -2.0% 0.39 -0.78%
    Motorola, Inc. MOT 2.0% 0.16 0.32%
    Murphy Oil Corporation MUR -1.0% 0.10 -0.10%
    Mylan, Inc. MYL 7.0% 0.06 0.42%
    Nabors Industries, Ltd. NBR 6.0% 0.06 0.36%
    NASDAQ OMX Group, Inc. NDAQ 13.0% 0.03 0.39%
    National Oilwell Varco, Inc. NOV 10.0% 0.17 1.70%
    National Semiconductor NSM 6.0% 0.03 0.18%
    NetApp, Inc. NTAP 5.0% 0.11 0.55%
    New York Times Company (NYSE:NYT) NYT 13.0% 0.01 0.13%
    Newell Rubbermaid, Inc. NWL 13.0% 0.04 0.52%
    Newmont Mining Corporation NEM 5.0% 0.24 1.20%
    News Corporation (NASDAQ:NWSA) NWSA 7.0% 0.30 2.10%
    Nicor Inc. GAS 19.0% 0.02 0.38%
    Nike, Inc. NKE 6.0% 0.28 1.68%
    NiSource, Inc. NI 21.0% 0.04 0.84%
    Noble Energy, Inc. NBL 2.0% 0.12 0.24%
    Nordstrom, Inc. JWN 10.0% 0.06 0.60%
    Norfolk Southern Corporation NSC 3.0% 0.19 0.57%
    Northeast Utilities NU 2.0% 0.05 0.10%
    Northern Trust Corporation NTRS 7.0% 0.13 0.91%
    Northrop Grumman Corporation NOC 8.0% 0.19 1.52%
    Novell, Inc. NOVL 3.0% 0.02 0.06%
    Novellus Systems, Inc. NVLS 2.0% 0.02 0.04%
    NRG Energy, Inc. NRG 24.0% 0.05 1.20%
    Nucor Corp. NUE 6.0% 0.13 0.78%
    NVIDIA Corporation NVDA 3.0% 0.09 0.27%
    NYSE Euronext NYX 0.0% 0.07 0.00%
    Occidental Petroleum Corporation OXY 3.0% 0.64 1.92%
    Office Depot, Inc. ODP 8.0% 0.02 0.16%
    Omnicom Group, Inc. OMC 14.0% 0.12 1.68%
    ONEOK OKS -1.0% 0.05 -0.05%
    Oracle Corporation ORCL 7.0% 0.94 6.58%
    O'Reilly Automotive, Inc. ORLY -2.0% 0.05 -0.10%
    Owens-Illinois, Inc. OI 7.0% 0.05 0.35%
    PACCAR, Inc PCAR -1.0% 0.15 -0.15%
    Pactiv Corporation PTV 2.0% 0.03 0.06%
    Pall Corporation PLL 4.0% 0.04 0.16%
    Parker Hannifin Corporation PH 12.0% 0.10 1.20%
    Patterson Companies, Inc. PDCO 3.0% 0.03 0.09%
    Paychex, Inc. PAYX 5.0% 0.10 0.50%
    Peabody Energy Corporation BTU 7.0% 0.12 0.84%
    People's United Financial, Inc. PBCT 4.0% 0.06 0.24%
    Pepco Holdings, Inc. POM -15.0% 0.04 -0.60%
    PepsiCo, Inc. PEP 5.0% 1.03 5.15%
    PerkinElmer, Inc. PKI 6.0% 0.03 0.18%
    Pfizer Inc. PFE 11.0% 1.32 14.52%
    PG & E Corporation PCG -6.0% 0.15 -0.90%
    Philip Morris International Inc PM 8.0% 0.94 7.52%
    Pinnacle West Capital PNW 7.0% 0.04 0.28%
    Pioneer Natural Resources Company PXD 1.0% 0.06 0.06%
    Pitney Bowes Inc. PBI 14.0% 0.05 0.70%
    Plum Creek Timber Company, Inc. PCL 8.0% 0.06 0.48%
    PNC Financial Services Group PNC 4.0% 0.29 1.16%
    Polo Ralph Lauren Corporation RL 8.0% 0.05 0.40%
    PPG Industries, Inc. PPG 11.0% 0.10 1.10%
    PPL Corporation PPL 6.0% 0.10 0.60%
    Praxair, Inc. PX 4.0% 0.24 0.96%
    Precision Castparts Corp. PCP 5.0% 0.16 0.80%
    Priceline.com, Inc. PCLN 5.0% 0.10 0.50%
    Principal Financial Group PFG 8.0% 0.08 0.64%
    Procter & Gamble Company PG 8.0% 1.77 14.16%
    Progress Energy, Inc. PGN -2.0% 0.11 -0.22%
    Progressive Corporation PGR 8.0% 0.11 0.88%
    ProLogis Trust PLD 6.0% 0.07 0.42%
    Prudential Financial, Inc. PRU -1.0% 0.25 -0.25%
    Public Service Enterprise Group PEG 0.0% 0.15 0.00%
    Public Storage (NYSE:PSA) PSA 6.0% 0.12 0.72%
    Pulte Homes, Inc. PHM 17.0% 0.03 0.51%
    QLogic Corporation QLGC 6.0% 0.02 0.12%
    Qualcomm, Inc. QCOM 7.0% 0.64 4.48%
    Quanta Services, Inc. PWR 3.0% 0.04 0.12%
    Quest Diagnostics, Inc. DGX 8.0% 0.09 0.72%
    Questar Corporation STR 0.0% 0.07 0.00%
    Qwest Communications International, Inc. Q 24.0% 0.07 1.68%
    R.R. Donnelley & Sons Company RRD 30.0% 0.04 1.20%
    RadioShack Corporation RSH 7.0% 0.03 0.21%
    Range Resources Corporation RRC 0.0% 0.07 0.00%
    Raytheon Company RTN 11.0% 0.21 2.31%
    Red Hat, Inc. RHT 4.0% 0.05 0.20%
    Regions Financial Corporation RF -13.0% 0.08 -1.04%
    Republic Services, Inc. RSG 5.0% 0.09 0.45%
    Reynolds American, Inc. RAI 9.0% 0.09 0.81%
    Robert Half International Inc. RHI 5.0% 0.05 0.25%
    Rockwell Automation ROK 7.0% 0.07 0.49%
    Rockwell Collins, Inc. COL 6.0% 0.09 0.54%
    Roper Industries, Inc. ROP 7.0% 0.05 0.35%
    Ross Stores, Inc. ROST 10.0% 0.06 0.60%
    Rowan Companies, Inc. RDC 2.0% 0.03 0.06%
    Ryder System, Inc. R 16.0% 0.02 0.32%
    Safeway Inc. SWY 10.0% 0.10 1.00%
    SAIC, Inc. SAI 8.0% 0.06 0.48%
    Salesforce.com, Inc. CRM 2.0% 0.08 0.16%
    SanDisk Corporation SNDK 6.0% 0.07 0.42%
    Sara Lee Corporation SLE 8.0% 0.09 0.72%
    Scana Corporation SCG -6.0% 0.04 -0.24%
    Schlumberger, Ltd. SLB 4.0% 0.74 2.96%
    Scripps Networks Interactive, Inc. SNI 6.0% 0.04 0.24%
    Sealed Air Corporation SEE 10.0% 0.03 0.30%
    Sears Holdings Corporation SHLD 14.0% 0.05 0.70%
    Sempra Energy SRE -2.0% 0.12 -0.24%
    Sherwin-Williams Company SHW 11.0% 0.06 0.66%
    Sigma-Aldrich Corporation SIAL 7.0% 0.06 0.42%
    Simon Property Group, Inc. SPG 6.0% 0.23 1.38%
    SLM Corporation SLM 1.0% 0.06 0.06%
    Smith International, Inc. SII 8.0% 0.10 0.80%
    Snap-on, Inc. SNA 12.0% 0.02 0.24%
    Southern Company SO -5.0% 0.25 -1.25%
    Southwest Airlines, Co. LUV 4.0% 0.09 0.36%
    Southwestern Energy Company SWN 0.0% 0.13 0.00%
    Spectra Energy Corporation SE 6.0% 0.14 0.84%
    Sprint Nextel Corporation S 33.0% 0.11 3.63%
    St. Jude Medical, Inc. STJ 4.0% 0.13 0.52%
    Stanley Works SWK 10.0% 0.09 0.90%
    Staples, Inc. SPLS 10.0% 0.16 1.60%
    Starbucks Corporation SBUX 6.0% 0.18 1.08%
    Starwood Hotels & Resorts Worldwide, Inc. HOT 5.0% 0.08 0.40%
    State Street Corporation STT -9.0% 0.22 -1.98%
    Stericycle, Inc. SRCL 5.0% 0.04 0.20%
    Stryker Corporation SYK 6.0% 0.15 0.90%
    Sunoco, Inc. SUN -11.0% 0.03 -0.33%
    SunTrust Banks, Inc. STI -15.0% 0.13 -1.95%
    Supervalu Inc. SVU 14.0% 0.03 0.42%
    Symantec Corporation SYMC 10.0% 0.13 1.30%
    Sysco Corporation SYY 4.0% 0.16 0.64%
    T Rowe Price Group TROW 3.0% 0.14 0.42%
    Target Corporation TGT 9.0% 0.38 3.42%
    TECO Energy TE 3.0% 0.03 0.09%
    Tellabs, Inc. TLAB 5.0% 0.03 0.15%
    Tenet Healthcare Corporation THC -1.0% 0.02 -0.02%
    Teradata Corporation TDC 8.0% 0.05 0.40%
    Teradyne, Inc. TER 4.0% 0.02 0.08%
    Tesoro Corporation TSO 8.0% 0.02 0.16%
    Texas Instruments, Inc. TXN 6.0% 0.29 1.74%
    Textron, Inc. TXT 14.0% 0.06 0.84%
    The Travelers Companies, Inc. TRV 13.0% 0.28 3.64%
    The Western Union Company WU 11.0% 0.11 1.21%
    Thermo Fisher Scientific, Inc. TMO 7.0% 0.19 1.33%
    Tiffany & Co. TIF 7.0% 0.06 0.42%
    Time Warner Cable, Inc. TWC 12.0% 0.16 1.92%
    Time Warner, Inc. TWX 12.0% 0.35 4.20%
    Titanium Metals Corporation TIE 7.0% 0.01 0.07%
    TJX Companies TJX 7.0% 0.17 1.19%
    Torchmark Corporation TMK 11.0% 0.04 0.44%
    Total System Services TSS 13.0% 0.03 0.39%
    Tyson Foods, Inc. (NYSE:TSN) TSN 16.0% 0.05 0.80%
    Union Pacific Corporation UNP 9.0% 0.35 3.15%
    United Parcel Service, Inc. UPS 7.0% 0.61 4.27%
    United States Steel Corporation X -9.0% 0.08 -0.72%
    United Technologies UTX 7.0% 0.65 4.55%
    UnitedHealth Group, Inc. UNH 12.0% 0.37 4.44%
    Unum Group UNM 12.0% 0.08 0.96%
    Urban Outfitters URBN 4.0% 0.04 0.16%
    US Bancorp USB 3.0% 0.47 1.41%
    Valero Energy Corporation VLO -5.0% 0.11 -0.55%
    Varian Medical Systems, Inc. VAR 5.0% 0.06 0.30%
    Ventas, Inc. VTR 6.0% 0.07 0.42%
    VeriSign, Inc. VRSN 6.0% 0.05 0.30%
    Verizon Communications Inc. VZ 18.0% 0.82 14.76%
    VF Corporation VFC 9.0% 0.07 0.63%
    Viacom, Inc. (VIA.B) VIA.B 6.0% 0.18 1.08%
    Visa, Inc. V 0.0% 0.38 0.00%
    Vornado Realty Trust VNO 0.0% 0.11 0.00%
    Vulcan Materials Company VMC 7.0% 0.06 0.42%
    W.W. Grainger, Inc. GWW 8.0% 0.07 0.56%
    Walgreen Company WAG 10.0% 0.33 3.30%
    Wal-Mart Stores, Inc. WMT 6.0% 1.13 6.78%
    Walt Disney Company DIS 7.0% 0.62 4.34%
    Washington Post Company WPO 9.0% 0.03 0.27%
    Waste Management, Inc. WM 7.0% 0.16 1.12%
    Waters Corporation WAT 6.0% 0.06 0.36%
    Watson Pharmaceuticals Inc. WPI 8.0% 0.05 0.40%
    WellPoint, Inc. WLP 17.0% 0.28 4.76%
    Wells Fargo Company WFC 9.0% 1.47 13.23%
    Western Digital Corporation WDC 12.0% 0.08 0.96%
    Weyerhaeuser Company WY -5.0% 0.09 -0.45%
    Whirlpool Corporation WHR 16.0% 0.06 0.96%
    Whole Foods Market, Inc. WFMI 5.0% 0.06 0.30%
    Williams Companies, Inc. WMB 1.0% 0.13 0.13%
    Windstream Corporation WIN 18.0% 0.05 0.90%
    Wisconsin Energy Corporation WEC -3.0% 0.06 -0.18%
    Wyndham Worldwide Corporation WYN 13.0% 0.04 0.52%
    Wynn Resorts, Ltd. WYNN -2.0% 0.05 -0.10%
    Xcel Energy, Inc. XEL 2.0% 0.09 0.18%
    Xerox Corporation XRX 26.0% 0.13 3.38%
    Xilinx, Inc. XLNX 7.0% 0.07 0.49%
    XL Capital, Ltd. XL -21.0% 0.06 -1.26%
    XTO Energy, Inc. XTO 10.0% 0.26 2.60%
    Yahoo, Inc. YHOO 4.0% 0.19 0.76%
    Yum Brands, Inc. YUM 4.0% 0.17 0.68%
    Zimmer Holdings, Inc. ZMH 8.0% 0.12 0.96%
    Zions Bancorporation ZION -57.0% 0.03 -1.71%
             
    Totals   4.39% 100.00 5.42%
           

    The Fine Print: As Registered Investment Advisors, we see it as our responsibility to advise the following: We take our research seriously, we do our best to get it right, and we “eat our own cooking,” but we could be wrong, hence our full disclosure as to whether we own or are buying the investments we write about.  Please note, investments involve risk and unless otherwise stated, are not guaranteed.  Past performance cannot be used as an indicator to determine future results.  Strategies mentioned may not be suitable for everyone. We do not know your personal financial situation, so the information contained in this communiqué represents the opinions of Peter “Mycroft” Psaras, and should not be construed as personalized investment advice. Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for you. Before acting on any information mentioned, it is recommended to seek advice from a qualified tax or investment adviser to determine whether it is suitable for your specific situation.




    Disclosure: Disclosure: long aapl, msft, wu, ibm, coh,shw , no positions in the others

    Disclosure: Disclosure: Disclosure: long aapl, msft, wu, ibm, coh,shw , no positions in the others
    Themes: analysis, index, growth Stocks: SPY, QQQ, AAPL, MSFT, WU, IBM, SHW, COH
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Comments (3)
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  • mbkelly75
    , contributor
    Comments (4545) | Send Message
     
    Thank you for your work here. It is well done as always and I will have to spend some time looking that table over. I agree that it is easier to hang on to your money than lose it and make it back. Warren Buffet put it this way:
    Rule #1 : Don't lose money.
    Rule #2: Never forget Rule #1.
    It works for me.
    25 Mar 2010, 08:59 AM Reply Like
  • origamirn
    , contributor
    Comment (1) | Send Message
     
    Great article. Obviously, you put in a lot of work here. When can we expect part 2?
    5 Feb 2011, 08:44 AM Reply Like
  • Mycroft
    , contributor
    Comments (648) | Send Message
     
    Author’s reply » seekingalpha.com/insta...

     

    Enjoy :-)

     

    Mycroft
    5 Feb 2011, 11:55 AM Reply Like
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