In the Market Comparables model, manager Richard Moore uses refined financial models to pick stocks with the prospect of earnings growth and that have possible hidden value. Last week, he added many new positions to the model, but today we’re going to take a look at two of them.
One of the positions added was ProShares Short S&P 500 ETF (SH). SH is an ETF that seeks to deliver results that equal the inverse of the S&P 500. SH has gone through many different price movements over the last month. On September 13th it closed at $49.82 and on October 11th it closed at $47.78. This makes sense as the S&P 500 closed at 1,121.90 on September 13th and has been rising (although inconsistently) since then, finally closing at 1,165.30 on October 11th.
Another position added to the model was Robbins & Myers Inc (NYSE: RBN). RBN is a company that makes equipment for pharmaceutical companies, water and wastewater treatment facilities and others. Over the past three years, the company’s sales have faltered. In 2008 they reported $787.2 million in sales; in 2009, they had $640.4 million, and in 2010 they reported $584.7 million. The good news is that their fiscal fourth quarter 2010 sales exceeded analysts’ expectations, indicating that the company may be experiencing a sales comeback. The company’s stock price has been rising over the past few months. On June 7th they had a closing price of $21.80 and on October 11th it had reached $27.32.
