Readings: Minyanville @ Marketwatch, High-Yield BRICs, IBD 200
Articles of interest:
We call it Vuja De in Minyanville, the strange sensation that we’ve been here before but nobody remembers the ramifications.
To wit, when comparing the late-1990s, pre-bubble mindset to the modern day perception, it seems as if the names have changed to misdirect the innocent.
Back then, Nobel Prize winners could do no wrong. Today, Goldman Sachs pedigrees are viewed in the same vein.
Back then, we saw a fear of missing. Today, we have exactly the same thing.
Mahanagar Telephone Nigam (MTE) . . . generates a dividend yield of 3.8%, which is paid twice a year. The company’s trailing P/E is a reasonable 15, and its PEG ratio is 2.2.
Another India stock that pays a relatively high dividend is Tata Motors (TTM) . . . pays a yield of 1.5%. Tata’s trailing P/E is a reasonably low 14, its price-to-sales ratio is 0.9 and its PEG ratio is a very decent 0.7.
The IBD 100, IBD 200, 85-85, CANSLIM Select, etc are just pure mathematical algorithms which pick stocks which meet certain criteria. If you have access to earnings data, you can replicate exactly same things.
The reason to focus on the IBD 200 is at a broader level it picks stocks based on 3 main criteria EPS momentum, price momentum, and sector momentum. So these are stocks are on the move in the market for that particular time frame. That is where money is flowing.
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