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Steve Hach is the Senior Editor at ValuEngine.com, a Newtown, Pennsylvania-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 7000 US, Japanese, and Canadian, and other foreign stocks. Hach utilizes... More
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  • Cnstruction Firms Rated and a Market Neutral Portfolio Example 0 comments
    Nov 10, 2011 2:23 PM | about stocks: MTZ, TXI, THO, LPX, KBR, AWI, RYN, CBI, ORN, PRIM, SHW, NCS, RPM

    MARKET OVERVIEW

     

     

    Index

    started week

    Wednesday Close

    3 day change

    3 day change %

    ytd

    DJIA

    12166.32

    11780.9

    -385.42

    -3.17%

    2.51%

    NASDAQ

    2683.38

    2621.65

    -61.73

    -2.30%

    -1.26%

    RUSSELL 2000

    746.48

    718.86

    -27.62

    -3.70%

    -7.15%

    S&P 500

    1253.21

    1229.1

    -24.11

    -1.92%

    -1.74%

     

     

    Summary of VE Stock Universe

    Stocks Undervalued

    80.49%

    Stocks Overvalued

    19.51%

    Stocks Undervalued by 20%

    44.79%

    Stocks Overvalued by 20%

    5.79%

     

    SECTOR OVERVIEW

     

    Sector

    Change

    MTD

    YTD

    Valuation

    Last 12-MReturn

    P/E Ratio

    Aerospace

    -3.13%

    1.51%

    4.99%

    16.43% undervalued

    1.09%

    17.66

    Auto-Tires-Trucks

    -5.36%

    -0.33%

    -29.03%

    20.30% undervalued

    6.30%

    21.67

    Basic Materials

    -5.26%

    1.51%

    -19.52%

    18.41% undervalued

    -6.71%

    28.03

    Business Services

    -3.62%

    1.30%

    -6.48%

    17.20% undervalued

    -1.91%

    21.44

    Computer and Technology

    -3.90%

    -0.15%

    -8.03%

    18.22% undervalued

    1.70%

    34.55

    Construction

    -4.62%

    0.97%

    -23.92%

    25.11% undervalued

    -16.94%

    32.13

    Consumer Discretionary

    -4.26%

    0.03%

    -11.87%

    18.78% undervalued

    -4.40%

    30.82

    Consumer Staples

    -3.59%

    -0.27%

    -15.04%

    12.12% undervalued

    -6.20%

    17.63

    Finance

    -4.30%

    0.28%

    -9.70%

    17.79% undervalued

    -6.64%

    18.56

    Industrial Products

    -4.52%

    0.70%

    -15.81%

    15.30% undervalued

    -2.96%

    20.45

    Medical

    -3.39%

    1.11%

    -5.54%

    23.65% undervalued

    -2.99%

    25.91

    Multi-Sector Conglomerates

    -3.83%

    0.18%

    -13.13%

    12.88% undervalued

    -4.76%

    20.84

    Oils-Energy

    -4.57%

    1.01%

    -16.79%

    16.57% undervalued

    5.94%

    33.09

    Retail-Wholesale

    -3.36%

    0.82%

    -1.88%

    13.27% undervalued

    9.00%

    23.44

    Transportation

    -3.84%

    -0.05%

    -15.44%

    15.31% undervalued

    -9.18%

    25.96

    Utilities

    -3.09%

    0.49%

    6.38%

    7.51% undervalued

    1.31%

    20.74

    Sector Talk—Construction

    Below, we present the latest data on leading Construction Sector Stocks from our Institutional software package (VEI). These results were filtered by market price and volume--no results below 3$/share or less than 100k shares/day volume.


    Top-Five Construction Sector Stocks--Short-Term Forecast Returns

    Ticker

    Name

    Mkt Price

    Valuation(%)

    Last 12-M Retn(%)

    MTZ

    MASTEC INC

    15.97

    -21.54

    9.68

    TXI

    TEXAS INDS

    27.34

    -13.55

    -29.26

    THO

    THOR INDS INC

    25.26

    -34.88

    -22.18

    LPX

    LOUISIANA PAC

    6.43

    -45.43

    -22.34

    KBR

    KBR INC

    26.46

    -14.11

    -1.96


    Top-Five Construction Staples Stocks--Long-Term Forecast Returns

    Ticker

    Name

    Mkt Price

    Valuation(%)

    Last 12-M Retn(%)

    LPX

    LOUISIANA PAC

    6.43

    -45.43

    -22.34

    TXI

    TEXAS INDS

    27.34

    -13.55

    -29.26

    MTZ

    MASTEC INC

    15.97

    -21.54

    9.68

    AWI

    ARMSTRONG WORLD

    38.37

    -22.6

    8.85

    RYN

    RAYONIER INC

    40.72

    -13.08

    18.72


    Top-Five Construction Staples Stocks--Composite Score

    Ticker

    Name

    Mkt Price

    Valuation(%)

    Last 12-M Retn(%)

    MTZ

    MASTEC INC

    15.97

    -21.54

    9.68

    CBI

    CHICAGO BRIDGE

    36.53

    -16.3

    31.54

    AWI

    ARMSTRONG WORLD

    38.37

    -22.6

    8.85

    RYN

    RAYONIER INC

    40.72

    -13.08

    18.72

    KBR

    KBR INC

    26.46

    -14.11

    -1.96


    Top-Five Construction Staples Stocks--Most Overvalued

    Ticker

    Name

    Mkt Price

    Valuation(%)

    Last 12-M Retn(%)

    ORN

    ORION MARINE GP

    5.97

    110.23

    -57.33

    PRIM

    PRIMORIS SERVCS

    14.59

    21.71

    77.71

    SHW

    SHERWIN WILLIAM

    84.95

    10.92

    18.3

    NCS

    NCI BLDG SYSTEM

    8.66

    5.6

    -16.33

    RPM

    RPM INTL INC

    22.66

    0.99

    8.94


    What's Hot-The Diversified Growth Strategy

    ValuEngine has created and tracked a variety of investment portfolio strategies which reflect varying investment objectives. Known as "benchmark portfolio strategies," these strategies provide an excellent starting point for using ValuEngine's cutting-edge research to select a basket of stocks.

    These strategies feature stocks selected according to specific criteria designed to meet the overall strategy goals for return and risk. All selections are based on calculations made by ValuEngine's proprietary stock valuation and forecast models as well as additional fundamental data-market capitalization, e/p ratio, momentum, dividend schedules - where applicable, as well as other factors.


     

    Market Volatility has been the story of late, with wild swings on an almost daily basis.  It is tough to maintain a long-only orientation in such an environment and picking and choosing winners among sectors and industry groups is doubly difficult as investors get whipsawed.  We offer market neutral flavors of most of our Benchmark Portfolio Strategies via our Institutional software package (VEI). 

    One of our most successful market neutral strategy portfolios is based on our Diversified Growth Strategy.  This Portfolio consists of 16 stocks--one from each sector, both long and short.   The stocks selected as longs have the highest forecast return for their sector--and vice versa for the shorts.  In addition, some basic size and liquidity criteria are also applied to limit the initial basket.

      Below, we provide a sample portfolio from our software:

    VE Diversified Growth MNS Portfolio Longs 

     

    Ticker

    Name

    Mkt Price

    Valuation(%)

    Last 12-M Retn(%)

    Forecast 1-Month Retn(%)

    Forecast 1-Yr Retn(%)

    P/E Ratio

    Sector

    AVAV

    AEROVIRONMENT

    31.34

    -13.71

    32.63

    3.1

    22.65

    20.57

    AEROSPACE

    WPRT

    WESTPORT INNOV

    26.96

    48.82

    50.45

    7.74

    27.18

       

    N/A

    AUTO-TIRES-TRUCKS

    VALE

    VALE RIO DO-ADR

    25.18

    -32.23

    -19.6

    2.07

    5.93

    5.14

    BASIC MATERIALS

    RPXC

    RPX CORP

    13.84

    -23.65

       

    N/A

    2.34

    7.9

    24.3

    BUSINESS SERVICES

    ROVI

    ROVI CORP

    28.23

    -50.29

    -46.46

    2.62

    11.32

    15.12

    COMPUTER AND TECHNOLOGY

    MTZ

    MASTEC INC

    15.97

    -21.54

    9.68

    2.03

    4.43

    11.89

    CONSTRUCTION

    MAT

    MATTEL INC

    28.01

    -30.73

    25.72

    6.32

    27.48

    13.54

    CONSUMER DISCRETIONARY

    JOBS

    51JOBS INC-ADR

    44.04

    -36.25

    -8.63

    3.74

    33.76

    23.28

    CONSUMER STAPLES

    FAF

    FIRST AMER FINL

    11.4

    -28.76

    -17.21

    1.93

    8

    9.72

    FINANCE

    AVY

    AVERY DENNISON

    25.43

    -35.16

    -30.06

    0.47

    0.74

    9.55

    INDUSTRIAL PRODUCTS

    AMRN

    AMARIN CORP PLC

    7.57

    -75

    152.33

    3.65

    12.92

    3.13

    MEDICAL

    MIC

    MACQUARIE INFRA

    26.91

    26.42

    38.57

    4.74

    3.34

    21.56

    MULTI-SECTOR CONGLOMERATES

    SD

    SANDRIDGE ENRGY

    7.22

    -52.49

    39.92

    2.03

    15.6

       

    N/A

    OILS-ENERGY

    GMCR

    GREEN MTN COFFE

    67.02

    -38.51

    95.96

    2

    9.45

    39.56

    RETAIL-WHOLESALE

    NAT

    NORDIC AMERICAN

    13.79

    -44.32

    -45.9

    9.46

    23.24

       

    N/A

    TRANSPORTATION

    CLNE

    CLEAN EGY FUELS

    11.08

    -23.24

    -24.11

    5.15

    25.06

       

    N/A

    UTILITIES


    VE Diversified Growth MNS Portfolio Shorts
     

    Ticker

    Name

    Mkt Price

    Valuation(%)

    Last 12-M Retn(%)

    Forecast 1-Month Retn(%)

    Forecast 1-Yr Retn(%)

    P/E Ratio

    Sector

    AXL

    AMER AXLE & MFG

    8.47

    -57.43

    -19.02

    -4.38

    -27.59

    4.12

    AUTO-TIRES-TRUCKS

    FRFHF

    FAIRFAX FIN LTD

    415.15

    300

    2.25

    -4.07

    -30.33

       

    N/A

    FINANCE

    DAL

    DELTA AIR LINES

    8

    -35.23

    -42.28

    -3.43

    -24.72

    7.05

    TRANSPORTATION

    PHM

    PULTE GROUP ONC

    5.54

    -66.84

    -28.52

    -3.32

    -19.26

       

    N/A

    CONSTRUCTION

    BYD

    BOYD GAMING CP

    6.42

    48.2

    -38.03

    -2.8

    -16.68

    756.63

    CONSUMER DISCRETIONARY

    VCI

    VALASSIS COMMS

    19.94

    -40.82

    -37.71

    -2.59

    -12.03

    8.23

    INDUSTRIAL PRODUCTS

    ELN

    ELAN CP PLC ADR

    10.93

    -20.95

    103.16

    -2.29

    -14.24

       

    N/A

    MEDICAL

    WPO

    WASHINGTON POST

    334.18

    133.75

    -12.4

    -2.11

    -18.66

    15.44

    CONSUMER STAPLES

    CPN

    CALPINE CORP

    14.97

    14.76

    18.06

    -2.09

    -13.09

    179.64

    UTILITIES

    BEAV

    BE AEROSPACE

    38.54

    -0.24

    5.21

    -1.71

    -11.05

    18.21

    AEROSPACE

    WDC

    WESTERN DIGITAL

    26.01

    21.77

    -24.76

    -1.64

    -5.1

    9.41

    COMPUTER AND TECHNOLOGY

    NG

    NOVAGOLD RSRCS

    8.84

    -13.99

    -38.05

    -0.96

    3.27

       

    N/A

    BASIC MATERIALS

    CLGX

    CORELOGIC INC

    13.51

    -13.78

    -25.07

    -0.78

    -1.5

    18.41

    BUSINESS SERVICES

    TSL

    TRINA SOLAR LTD

    7.39

    -48.17

    -74.07

    -0.64

    -3.34

    3.08

    OILS-ENERGY

    ITT

    ITT CORP

    19.02

    -67.45

    -19.06

    -0.58

    -11.55

    4.07

    MULTI-SECTOR CONGLOMERATES

    ARO

    AEROPOSTALE INC

    16.39

    56.19

    -32.99

    -0.54

    -4.04

    13.11

    RETAIL-WHOLESALE

     


     

    Themes: construction Stocks: MTZ, TXI, THO, LPX, KBR, AWI, RYN, CBI, ORN, PRIM, SHW, NCS, RPM
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