Superstock Investor
Morning Briefing

Wednesday, August 20, 2014

Morning Matters:

Retracements & Other Considerations

We have been highlighting the retracements in the Russell 2000 and IWM since the July high. The Russell 2000 is still below its March high meanwhile the S&P 500 keeps on ripping away. [Image 1] Through yesterday's close the Russell 2000 has now almost moved back above all its retracements from from the May low to the July high which was also the March high. Pay attention to 115.44 which is the 38.2% retracement on IWM.

[Image 2]

The Russell 2000 is now just up 0.07% for the year through last night's close. Meanwhile, the S&P 500 is up 7.21%. That means the S&P 500 is beating the Russell 2000 by 7.14%.

The under performance of the Russell 2000 is so great it almost equals the under performance seen in 2008. We started adding new names to the Morning Matters Portfolio a couple weeks ago as we feel that the Russell is finally getting ready to right itself.

A move above $115.44 on IWM may be enough to get us to deploy our last two cash positions in the next week.


Today's Superstock Investor Stock Scorecard:

by Superstock Investor


Lowe's (LOW) has had a big run to the upside. The company beat estimates by $0.01. However, its price target is less than $1 away from yesterday's close. We are not a fan of this name as a result.

Company Information

Sector: Consumer Discretionary
Industry: Home Improvement Retail
Market Cap:  $50,589 (Millions)


  Price %Gain  
Current Price $48.18    
Price Target $52.49 9.0%  
Upper Bound $59.32 23.1%  
Lower Bound $46.45 -3.6%  

Fundamental Variables

P/E Ratio 16.5    
Sales Growth 2.3%    

Valuation Variables

  Past Current Future
Profitability (CFROI) 5.2% 7.4% 5.1%
Growth (in Assets) 8.4% 2.3% 2.3%
Color Legend
Excellent Top 10%
Good 11- 30%
Average 31- 70%
Fair 71- 90%
Poor Bottom 10%

Stock data last updated 21-JAN-14.

Data provided by Ativo Research LLC. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Ativo Research LLC is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing this page, you agree not to redistribute the information found herein.
Altivo Research Value+Plus® Release 2007


Articles That Matter:

Merger Activity Up Mid Week

Mergers and acquisitions are fast and furious. This morning Bloomberg has a story that Infineon is looking to acquire a U.S. semiconductor company and that the deal could occur as soon as today.


Later today markets will focus on the latest Federal Reserve Open Market Committee (FOMC) minutes. Watch to see how the market trades from 2:00 to the close.

FOMC Minutes"