C. HUYGENS - Sunday, February 24, 2013
Weekly Reputation Index Metrics
At the close of trading February 22, 2013, REPUVART and REPUVAR stood at 3170.18 and 2711.93 respectively. Over the past four weeks, the former has changed by -5.82%, while the latter has changed by -5.96%. The benchmark S&P500 Composite Index stood at 1320.12 (31 Dec 2001=1000) and has changed over the past four weeks by 0.84%.
Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by 11.69% and 9.84% respectively; the S&P500 Composite Index has changed by 10.97%. Over the trailing 36 months, the REPUVART and REPUVAR have changed by 69.24% and 62.14% respectively; the S&P 500 Composite Index has changed by 38.46%.
Other interval changes in the magnitude of the indices are
As was the case last week, the markets appear at once Brownian in motion and otherwise optimistic, but perhaps now a bit more frightened. The VIX, an index of fear, is rising. Europe is still caught up in its shorts and Germany is waffling; back on this side of the pond industries are consolidating. Realization of the value not seen late last year is still progressing to some degree, but the year is still young.
Turning to companies whose intangible assets, in terms of their cash-generating potential (Reputational Value Premium), appear to have been undervalued at the start of this calendar year, it has been brutal. The greatest gains in the portfolio for the year are being reported by Michael Kors Holdings (KORS), which remains in first place with a year-to-date return of 13.17%, down 7% from last week. Lamar Advertising Co (LAMR) also remains at second place with a return of 9.28%, down about 3% from last week. Amerigas Partners (APU) is new in the #3 position with an 8.41% return for the year. 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, the new greatest disappointment this year is VeriFone Systems Inc. (PAY) at -38.63%. Fusion-IO, Inc. (FIO) increased its loss to -29.5%, and Royal Gold Inc. (RGLD) sank further at -16.82%.
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
The 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.
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 describe in the book, Reputation, Stock Price, and You (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 2013.
Reputation, Risk and Finance
Reputation 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
1. Become better informed. Participate in our regular Mission Intangible Monthly Briefings
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
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