Weekly Reputation Index Metrics
At the close of trading September 6, 2013, REPUVART and REPUVAR stood at 3556.20 and 2998.02 respectively. Over the past four weeks, the former has changed by 0.14%, while the latter has changed by -0.06%. The benchmark S&P500 Composite Index stood at 1441.69 (31 Dec 2001=1000) and has changed over the past four weeks by -2.14%.
Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by 17.79% and 15.29% respectively; the S&P500 Composite Index has changed by 15.11%. Over the trailing 36 months, the REPUVART and REPUVAR have changed by 114.40% and 69.68% respectively; the S&P 500 Composite Index has changed by 61.44%.
Other interval changes in the magnitude of the indices are shown below.
AnalysisThe first week back to school featured risk on/risk off views of Syria, bonds on/bonds off views of central bankers, and some thumb sucking. All that made the spreads of REPUSPX and REPUVAR fork over a small cost.
REPUSPX inched up to a 42.47% return for the year, but decreased its healthy spread over the S&P500 to 26.89% while RepuStars (REPUVAR) increased its spread loss for the year to date to -3.69% on an increased return of 9.49% for the calendar year and 16.84% for the trailing twelve months.
The greatest gains in the portfolio for the year are being reported by GameStop Corp (GME), which holds on to first place with returns of 100.04%; returning to second place with year to date returns of 47.23% is Wellpoint Inc (WLP); while returning to third place is Michael Kors Holdings (KORS) at 44.94% for the year. For believers in undergarments as leading indicators of market behavior, the return of Kors is a good sign. These are three of the 19 firms identified by the RepuStars Variety algorithm at the start of the year as value opportunities.
As for those whose reputational value has not panned out so far, Fusion I-O remains at bottom for a year-to-date loss of -50.93%, Royal Gold (RGLD) slips back to -29.21, and VeriFone Systems Inc. (PAY) is up almost 10% of its original value with a loss of -26.01% for the year.
Side Note: A description of the portfolio constituents and historical returns data from December 31, 2001 can be obtained on request from Technology Option Capital, its manager. Click Here.
BackgroundThe RepuStars® Variety Corporate Reputation Index calculated by S&P/Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re Reputational Value Metrics. The metrics comprise non-financial indicators of reputational value (RVM) and ranking (CRR). The RepuStars Variety Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR. Click here for real time quotes.
The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to Steel City Re’s proprietary Reputational Value Metrics™, which track 7400 companies weekly. The principles behind measuring reputational value are described in the book, Reputation, Stock Price, and You: Why the market rewards some companies and punishes others (2012, Apress).
The RepuStars indices are reconstituted annually in the first week of January and posted by S&P/Dow Jones Indexes in the third week. The Indices were last reconstituted 20 Jan 2012.
Reputation, Risk and FinanceReputation management through superior control of a company's intangible assets may be one of the best paths to value creation today. If it is not on your agenda, perhaps it should be. Here are several things you can do right now to start creating value for your organization:
1. Become better informed. Participate in our regular Mission Intangible Monthly Briefings held on the second Friday of every month, read the book, Reputation, Stock Price and You: Why the market rewards some companies and punishes others (2012) or its predecessor, Mission: Intangible. Managing risk and reputation to create enterprise value (2010), available at the IAFS Store, specialty finance sector retailers, or other leading online book retailers.
2. Become a member of the Intangible Asset Finance Society and engage.
3. Join our community on Linked-In and stay in the information flow.