Richard Moore manages the Covestor model Market Comparables by using financial models that have been long refined. He looks at the financial forecast of companies and assesses their potential for earnings growth.
During the last few weeks, Moore has added many additional positions to the model. One of these is WHX Corp (NASDAQ: WXCO), a global industrial company. WXCO’s sales fell from $725.8 million in 2008 to $534.4 million in 2009. On November 9th the company released their quarter three 2010 financial results. Their third quarter net sales of $173.8 million beat last year’s results of $142.3 million for the same quarter.
Another position added to the model was Motorcar Parts of America Inc (NASDAQ: MPAA). MPAA had $133.3 million in sales in 2008 and $134.9 million in 2009. In 2010 their sales had grown to $147.2 million, beating analysts’ expectations for the second consecutive year. By the second quarter of the 2011 fiscal year they had already reported $77.2 million in sales. Their earnings per share have grown from $0.32 in 2009 to $0.80 in 2010 while their number of outstanding shares has remained the same.
ProShares Short QQQ ETF (PSQ) was also added to the Market Comparables model. PSQ attempts to mirror the inverse of the NASDAQ-100 Index’s daily performance. To do so, the underlying assets of the fund consist of derivatives that are believed to deliver the desired performance results. The NASDAQ-100 Index includes 100 of the largest non-financial domestic and international securities found on the Nasdaq. As of November 10th the fund was trading at a premium to NAV.
