Two ways to make money on Wall Street: Run with the crowd or bet against it. Whatever your preference, the Value Line Investment Survey has statistics that can help you sort out the prospects.
Forty years ago Samuel Eisenstadt created the “timeliness” ranking formula that made Value Line famous. It scores 1,700 stocks for expected performance over the next 6 to 12 months, using a plethora of technical (stock-price-related) and financial factors. The formula, still in use, has had a remarkable run. A hypothetical investor reshuffling his portfolio every Jan. 1 to hold only the 100 top-ranked stocks would have earned a 19% compound annual capital gain over the 40 years, says Value Line, against 10% for the S&P 500. (These numbers exclude dividends.) Transaction costs would have dampened the return, but even so the performance has been strong enough to baffle proponents of the Efficient Market Hypothesis, which says that no statistical formula can keep beating the market.
Full story (reg. required) at Forbes.com
Posted by Gillies on March 29, 2005
In the last year, newspaper and publishing stocks in the S&P 500 are down 9%, versus a 7% gain for the broader index. The selloff has left some print media giants with historically cheap valuations. Still, it’s not easy being a bull on this sector.
“The last three years have not been fun,” says Miles Groves, an economist and consultant to the newspaper business. Groves, who also publishes monthly and quarterly research, cites disappointing advertising results, sagging circulation stats and challenges ahead as readers devote more attention to bloggers, while media buyers send more dollars to the likes of Google and Yahoo!.
Full story at Forbes.com
Posted by Gillies on March 25, 2005
Gary Carr is a mechanical engineer working for Ensco, a professional-services firm and government contractor headquartered in Falls Church, Va. But get him started on the subject of the robot he’s building, and he sounds more like a beaming parent.
“It starts to go off and make decisions on its own,” he explains. “Decisions sometimes you can’t believe it made.”
Carr leads Ensco’s team which is competing in the second annual Grand Challenge, a robot derby taking place next October that is sponsored by the Defense Advanced Research Projects Agency (DARPA). The challenge in question is to build an unmanned vehicle capable of traveling on its own through 175 miles of desert terrain in less than ten hours. The team whose robot completes the mission the fastest takes home $2 million.
At last year’s Grand Challenge, Ensco fielded “David,” a modified all-terrain vehicle. Alas, it and the 12 other robots all crapped out within eight miles of the start. But the firm got plenty of mileage in publicity terms. On its Web site, Ensco, a relatively small outfit with $100 million in annual revenue, still proudly touts a 38-page booklet packed with media mentions from the 2004 event.
Full story at Forbes.com
Posted by Gillies on March 9, 2005