In Richard Moore’s Market Comparables model, Moore searches for hidden value and companies with the potential for future earnings growth while conducting initial screenings based on stock price movement and valuation over time.
This week, Moore added ProShares Short S&P 500 ETF (SH) to the model. SH replicates the inverse of the performance of the S&P 500 index. As of September 17th, 2010 the fund’s holdings included S&P500 Swaps and S&P Mini Index futures and was trading at NAV.
Moore also brought GT Solar International Inc (NASDAQ: SOLR) into the model. SOLR is global leader in providing those technologies that are necessary for the creation of solar panels and cells. On September 6th the company announced a new product, the SDR400 reactor, which can lower energy consumption by up to 20 percent. On September 3rd, before the announcement, the stock had closed at $8.78. On September 7th—the first trading day after the announcement—the stock’s price had fallen to $7.76. Since that time, the stock has started rising again, closing at $7.90 on September 16th.
Another position added to Market Comparables this week was Kensey Nash Corp (NASDAQ: KNSY), a company that develops and provides medical devices. On August 23rd the company released its 2010 fiscal year results. Their gross income and net revenues both fell from the previous year’s totals and their total liabilities grew. On the date these results were announced the stock had a closing price of $24.73. Since then, the price has gone up. It closed at $30.22 on September 16th, 2010. Earlier in the year, the company announced a new two-year collagen supply agreement had been reached with St. Jude Medical. They also reached an agreement with Arthrex, who will be marketing and distributing Kensey products related to tendon repair and small joint surgeries.
