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Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Thursday, November 9, 2006
Presented by:
Priya J. Kapila
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Federal Reserve Bank
Former Fed Chief Greenspan: Worst housing woes behind us
Dallas Fed Chief Fisher encouraged by slowed inflation
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Exchange Rates
The dollar fell, slipping to a six-week low against the Euro as uncertainty over the result of the U.S. elections gave traders an excuse to take profits on the currency
The dollar was poised for its biggest daily loss against the yen in more than six weeks after comments on interest rates from the Bank of Japan
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Exchange Rates
Dollar VS Yen
Dollar VS Euro
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
International Markets
A European Commission report criticizes China on fair-trade issues, including piracy, and notes a growing trade deficit of €106 billion a year
In Europe, fast-rising prices and household debt levels could lead to trouble -- at least in some countries
Soaring demand for generics and competitive pressures are making the region a hotbed for Big Pharma deals to swallowing eastern Europe’s drugmakers
The world's second-biggest economy, Japan, is expected to announce record expansion. But it's mostly based on exports, and wages have not kept pace
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Stock Index - Asia
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Stock Index - Europe
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Sector Performance
Leaders1. Energy (1.46%)
2. Health Care (1.14%)
3. Telecommunications (0.89%)
Losers1. Utilities (-1.01%)
2. Consumer Goods (-0.11%)
3. Financials (-0.01%)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Consumer Staples
Both P&G and Clorox report good quarters but uncertainty leads them down
Altria faces uncertainty going into the election
Leggett & Platt down on poor outlook going forward
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Consumer Staples
Consumer Goods -0.11%
Food & Beverage -0.95%
Beverages 0.04%
Brewers -0.34%
Soft Drinks 0.11%
Food Products -2.43%
Personal & Household Goods 0.18%
Household Goods -0.01%
Durable Household Products 0.72%
Personal Goods 0.77%
Personal Products 1.33%
Tobacco -0.94%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Consumer Discretionary
Honda sales down for the month of October
Coach’s 3Q earnings up 40%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Consumer Discretionary
Automobiles & Parts -0.11%
Automobiles 2.41%
Tires 0.98%
Personal & Household Goods 0.18%
Nondurable Household Products 0.82%
Furnishings -0.95%
Home Construction -4.18%
Leisure Goods 2.91%
Consumer Electronics -5.72%
Recreational Products 2.54%
Toys 5.96%
Personal Goods 0.77%
Clothing & Accessories -0.11%
Footwear 0.54%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Consumer Goods – Staples & Discretionary
Market Cap: 2670.9B (2645.1B)
P/E: 25.52 (31.31)
ROE: 17.44% (17.20%)
Dividend Yield: 2.07% (2.00%)
Long Term Debt to Equity: 1.26 (1.15)
Price to Book Value: -10.68 (-3.19)
Net Profit Margin: 6.83% (6.74%)
Price to Free Cash Flow: 83.32 (122.20)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Industrial - Goods
Even as Texas Industries Inc. maintains its silence regarding buyout talks instigated by a major shareholder, insiders are selling company shares, suggesting a deal isn't on the horizon.
Mexican cement giant Cemex(CX) said Friday it planned to make a $12.8 billion offer to buy Rinker Group Ltd., an Australian firm that derives the bulk of its profits from selling construction materials in the United States, even as the domestic housing market continues its recent slump.
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Industrial - Goods
Industrials 0.82%
Construction & Materials 1.37%
Building Materials & Fixtures 0.76%
Heavy Construction 3.01%
Industrial Goods 0.78%
Aerospace & Defense 2.44%
General Industrials 0.74%
Electronic & Electrical Equipment 1.01%
Industrial Engineering -0.32%
Commercial Vehicles & Trucks -0.38%
Industrial Machinery -0.24%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Industrials - Goods
Market Cap: 1092.8B (1390.5B)
P/E: 16.29 (20.44)
ROE: 15.02% (15.29%)
Dividend Yield: 1.57% (1.90%)
Long Term Debt to Equity: 0.79 (1.64)
Price to Book Value: 70.32 (-22.33)
Net Profit Margin: 5.44% (6.88%)
Price to Free Cash Flow: 93.76 (-36.94)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Industrial - Services
Sears Holdings Corp. said on Monday that its subsidiary, SHLD Acquisition Corp., filed a revised proxy circular in connection with a Nov. 14 meeting of Sears Canada Inc. shareholders.
Wal-Mart's Woes Could Deflate Prices on Competitive Products
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Industrial - Services
Industrials 0.82%
Industrial Transportation 0.41%
Delivery Services 0.02%
Marine Transportation -1.99%
Railroads 0.86%
Transportation Services -0.54%
Trucking 1.40%
Support Services 0.86%
Business Support Services 1.79%
Business Training & Employment Agencies 2.04%
Financial Administration 0.39%
Industrial Suppliers -4.02%
Waste & Disposal Services 1.40%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Industrials - Services
Market Cap: 3174.3B (3169.4B)
P/E: 23.37 (26.24)
ROE: 14.52% (14.09%)
Dividend Yield: 1.29% (1.28%)
Long Term Debt to Equity: 0.92 (1.48)
Price to Book Value: 1.21 (3.25)
Net Profit Margin: 5.93% (5.61%)
Price to Free Cash Flow: -7.20 (69.36)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Financials
According to UBS, Wells Fargo, and other underwriters, subprime mortgages are deteriorating rapidly.
Berkshire Hathaway shares climbed to a record on Monday after the insurance-focused conglomerate reported big third-quarter profits that were fueled by a benign hurricane season.
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Financials -0.01%
Banks 0.27%
Insurance 1.26%
Nonlife Insurance 1.15%
Insurance Brokers 3.42%
Life Insurance 1.58%
Financial Services -1.10%
Real Estate -3.94%
General Financial 0.30%
Asset Managers -1.07%
Consumer Finance 1.29%
Specialty Finance 0.22%
Investment Services 0.05%
Mortgage Finance 1.15%
Financials
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Financials
Foreign Regional Banks
Life Insurance
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Financials
Market Cap: 7258.1B (5925.2B)
P/E: 13.04 (14.58)
ROE: 17.03% (16.8%)
Dividend Yield: 2.40% (2.71%)
Long Term Debt to Equity: 2.46 (2.63)
Price to Book Value: 2.69 (2.91)
Net Profit Margin: 14.01% (14.75%)
Price to Free Cash Flow: 17.75 (34.43)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Utilities
Duke Energy Corp. posted lower profits than expected in its latest earnings release. Earnings were 48 cents/share, below the 56 cents/share estimates of Reuters' analysts. Executives for the company still claim a 4-7% earnings growth is expected following the spin-off of the natural gas division to Spectra Energy Corp., but that remains to be seen.
The French Parliament on Wednesday adopted a bill to privatize state-owned Gaz de France, clearing an obstacle to its proposed combination with the utility Suez SA that would create an energy powerhouse.
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Utilities
Utilities -1.01%
Electricity -1.03%
Gas, Water & Multiutilities -0.94%
Gas Distribution 0.47%
Multiutilities -1.79%
Water -3.87%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Utilities
Market Cap: 1059.1B (1053.6B)
P/E: 36.03 (33.91)
ROE: 15.08% (16.28%)
Dividend Yield: 3.89% (3.91%)
Long Term Debt to Equity: 2.11 (2.13)
Price to Book Value: 2.76 (2.66)
Net Profit Margin: 8.22% (9.22%)
Price to Free Cash Flow: -264.0 (-64.59)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Health Care
Democrats dislike the new Medicare plan that has been benefiting big Pharma and may revoke the law that bars Medicare from negotiating prices directly with drug companies.
Abbot Labs to buy Kos Pharmaceuticals for $3.7 billion, a 56% premium over market price.
Novartis unveils plans to build a $100 million research center in Shanghai, China
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Health Care
Health Care 1.14%
Health Care Equipment & Services 1.05%
Health Care Providers 0.43%
Medical Equipment 1.82%
Medical Supplies 1.39%
Pharmaceuticals & Biotechnology 1.19%
Biotechnology 0.23%
Pharmaceuticals 1.50%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Health Care
Market Cap: 2630.2B (2647.0B)
P/E: 28.13 (34.62)
ROE: 14.73% (14.56%)
Dividend Yield: 1.63% (1.59%)
Long Term Debt to Equity: 0.55 (0.55)
Price to Book Value: 5.32 (5.48)
Net Profit Margin: 10.86% (11.43%)
Price to Free Cash Flow: 53.75 (95.31)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Information Technology
Microsoft is reported to be entering an unusual partnership with Novell that gives a boost to the Linux operating system, a rival to the software giant's Windows software and work toward developing technologies to make it easier for users to run both Suse Linux and Microsoft's Windows on their computers.
By forging a peace pact with one seller of Linux, Microsoft could raise pressure on Red Hat, the leading provider of Linux, and a Novell rival.
Apple plans to leverage its retail stores as 'launch pads' for the new iTV, using a few LCD televisions to demonstrate the features of the device.
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Information Technology
Technology 0.39%
Software & Computer Services 0.36%
Computer Services 0.67%
Internet -0.08%
Software 0.37%
Technology Hardware & Equipment 0.41%
Computer Hardware 0.19%
Electronic Office Equipment 0.27%
Semiconductors 0.01%
Telecommunications Equipment 1.06%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Information Technology Market Cap: 5196.3B (5702.7B)
P/E: 26.13 (22.97)
ROE: 14.87% (14.82%)
Dividend Yield: 2.02% (1.94%)
Long Term Debt to Equity: 0.71 (0.62)
Price to Book Value: 7.07 (6.17)
Net Profit Margin: 10.67% (10.77%)
Price to Free Cash Flow: 67.67 (-27.16)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Basic Materials
Higher copper prices boost Wolverine Tube sales; stock falls on Q3 loss and the company is considering Chapter 11
Azco Mining Inc. , a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, announced today that it had agreed with a major creditor to terminate a 2002 financing lease and eliminate all the company's outstanding debt under the lease.
Royal Gold Inc., a company that buys rights to collect royalties from mining outfits, said Wednesday it raised its annual dividend 18 percent.
EU regulators on Wednesday reimposed a 10 million euro ($12.7 million) fine on Arcelor SA for a steel beam cartel it took part in from 1988 to 1991.
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Basic Materials
Basic Materials 0.34%
Chemicals 0.71%
Basic Resources -0.08%
Forestry & Paper -2.32%
Forestry -0.85%
Paper -3.53%
Industrial Metals 0.47%
Aluminum -0.12%
Nonferrous Metals 2.24%
Steel -0.24%
Mining 0.18%
Coal -1.05%
General Mining 0.41%
Gold Mining 1.45%
Platinum & Precious Metals 6.42%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Basic Materials
Copper
Steel & Iron
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Basic Materials Market Cap: 4483.5B (4408.3B)
P/E: 11.64 (13.46)
ROE: 26.98% (26.08%)
Dividend Yield: 2.26% (2.31%)
Long Term Debt to Equity: 0.44 (0.43)
Price to Book Value: 3.31 (3.56)
Net Profit Margin: 12.10% (11.68%)
Price to Free Cash Flow: 27.68 (1.89)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Energy
The main reason for the increases in the Energy sector is due to positive earnings releases by a number of companies in the sector. The majority of companies in the sector had a stellar 3rd quarter due to excessively high oil prices. The outlook for the next quarter is not as promising however.
OPEC has sought to cut oil production by 1.2 million barrels per day as of November 1, due to the low prices and excess supplies. Many investors doubt OPEC's ability to cut production as inventories of crude continue to rise.
Chevron reported a $5 billion profit in its earnings release, an increase of 40% from the last quarter.
Big oil companies will be a top target of Democratic lawmakers when they officially take over the House of Representatives early next year.
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Energy
Oil & Gas 1.46%
Oil & Gas Producers 1.37%
Exploration & Production 0.32%
Integrated Oil & Gas 1.77%
Oil Equipment, Services & Distribution 1.73%
Oil Equipment & Services 1.82%
Pipelines 1.05%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Energy
Market Cap: 1574.6B (1544.0B)
P/E: 8.50 (8.70)
ROE: 28.50% (27.90%)
Dividend Yield: 2.85% (2.89%)
Long Term Debt to Equity: 0.36 (0.28)
Price to Book Value: 2.93 (2.92)
Net Profit Margin: 11.30% (10.80%)
Price to Free Cash Flow: 40.20 (45.00)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Telecommunications Services
FCC Delays Vote on AT&T-BellSouth Deal Shares of the two companies, accounted for about a half of the
industry market capitalization, fell last week, a reaction for the bad news. There was no other big news over past week.
AT&T sees growth in Indian corporate telecoms market AT&T wins contract extension with Reliant Energy
Cingular Wireless unveiled a new phone last week that taps into subscription music services from Napster, Yahoo! and eMusic and streaming radio from XM Satellite Radio
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Telecommunications Services - Domestic
Market Cap: 420.2B (428.3B)
P/E: 19.40 (19.00)
ROE: 13.40% (12.40%)
Dividend Yield: 3.56% (3.24%)
Long Term Debt to Equity: 0.78 (0.79)
Price to Book Value: 7.87 (7.62)
Net Profit Margin: 9.80% (9.40%)
Price to Free Cash Flow: 52.40 (69.40)
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Telecommunications Services
Foreign
Domestic
Telecommunications 0.89%
Fixed Line Telecommunications 0.06%
Mobile Telecommunications 4.29%
Economic Committee Report
The Mizzou Investment Fund Management ProgramThe Mizzou Investment Fund Management Program
Week of 11/3/2006