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Newsletter Sample
"Bad news
on stagflation, housing bust and credit crunch – No Problem!
CNBC, the Republican Re-Election network, gushed about 14
percent foreign earnings’ growth in the Dow and S&P. Wall
Street’s best salesperson, former chair of Goldman Sachs and
Treasury Secretary Paulson cajoled the Chinese to invest $3
billion of their dollar stash in the Blackrock IPO. At last
look, the Chinese’s Blackrock stake shrunk to $2.5 billion. Only
100 trades more by Secretary Paulson ends the Chinese trade
imbalance even with currency manipulation"
"Then some regrettable wretch looked at the
earnings for the second quarter, and calculated at best an 8
percent, year over year earnings’ growth. The Dow dumped seven
hundred points faster than Star Jones lost 200 pounds with a
stomach staple. At 13265 at the end of July, the Dow showed a
more realistic 16.9 P/E on 2006 EPS of $798.70, and 15.3 P/E on
expected 2007 EPS of $878.74. A week later, the Dow dropped to
13182 and fell to exactly 15 P/E on expected 2007 EPS of
$884.55, but still a wishful 11 percent increase in earnings
from 2006. A more realistic 8 percent increase in earnings and a
15 P/E on 2007 EPS put the Dow near 13000"
(August 2007) |
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Wealth Without Working is strictly
independent research, and is based on information from reliable
sources. It is not a recommendation or solicitation to buy or sell
specific securities. Readers are encouraged to consult with a
investment professional to determine if the methods, stocks or bond
funds in the newsletter are appropriate for their investment
objectives. |
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Company Analyses Sample:
ALCOA - AA
HOLD TO SELL RATING Price $41.32 on May 31,2007 by
www.wealthwithoutworking.com
Alcoa last reached WW/OW's target buy below
price of $23 briefly in late 2005, and below $20 during
2002-2003. The lucky investors in at these prices undoubtedly
pruned their double A holdings to a zero cost and infinite
return basis in the last weeks, but the more hoggish should at
least consider the following:(1) Non-operating income - gains on
asset sales - constitutes 20 percent of net income over the past
three years;(2) Mining, refining and smelting produce 80 percent
of the operating income, but only one third of the sales.
Downstream products produce two thirds of the sales, and very
little income. Packaging, flat and extruded products garner half
the sales and a 2 percent margin. Without the downstream use in
packaging, flat, extruded and engineering products, primary
alumina and metals generate a robust zero margin;(3)Despite the
recent efforts to bolster Alcoa's curbside appeal, the 2000
Reynolds acquisition proves the fallacy of adding capacity in
marginally profitable downstream business, and adding capacity
as an acquirer of Alcan likely entails considerable downside
risk.
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