Market Update – May 20, 2017

Overnight Market Update

Big day in the markets Friday after a turbulent week for the S&P 500, up 0.68% overnight to 2381 and the Dow Jones Industrial Average, up 0.69% to 20,804. Biggest gains came in the Basic Materials sector, up 1.57% while Healthcare had the smallest gain, up just 0.25%. Largest individual stock gains included Autodesk, Inc. (NASDAQ:ADSK), up 14.69%, and Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPB), up 13.04%, while the biggest losers were Sibanye Gold Ltd (ADR) (NYSE:SBGL), down 32.23% and Foot Locker, Inc. (NYSE:FL), down 16.64%. Highest trading stocks in terms of volume included Bank of America Corp (NYSE:BAC), with 89.57M shares traded and Frontier Communications Corp (NASDAQ:FTR), with 50.84M shares traded.

market update

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TAM Deep Value Stock Screeners – Market Update

The TAM Deep Value Stock Portfolio rose 1.30% overnight to 9.52%. The Russell 3000 (INDEXRUSSELL:RUA) rose 0.68% to 9.81%. The TAM Deep Value Stock Portfolio trails the Russell 3000 by 0.29% since inception.

In other overnight news from the three TAM Deep Value Stock Screeners:

TAM Large Cap 1000 Stock Screener

This screen shows the top 30 companies in The Acquirer’s Multiple® Large Cap 1000 universe, which is drawn from the largest 1,000 U.S. exchange-traded stocks and ADRs excluding financials and utilities.

Biggest Gainers: Teck Resources Ltd (USA) up (NYSE:TECK) 3.55%, Ternium SA (ADR) (NYSE:TX) up 3.48%.

Biggest Losers: Foot Locker, Inc. (NYSE:FL) down 16.64%, L Brands Inc (NYSE:LB) down 1.41%.

TAM All Investable Stock Screener

This screen shows the top 30 companies in The Acquirer’s Multiple® All Investable Stocks universe, which includes the largest half of U.S. exchange-traded stocks and ADRs. The screen excludes financials and utilities.

Biggest Gainers: Net 1 UEPS Technologies Inc (NASDAQ:UEPS) up 4.44%, Seadrill Partners LLC (NYSE:SDLP) up 3.49%.

Biggest Losers: Sibanye Gold Ltd (ADR) (NYSE:SBGL) down 32.23%, Kirkland’s, Inc. (NASDAQ:KIRK) down 2.71%.

TAM Small & Micro Cap Stock Screener

This screen shows the top 30 companies in The Acquirer’s Multiple® Small and Micro Cap Stocks universe, which includes the smallest half of U.S. exchange-traded stocks and ADRs. The screen excludes financials and utilities.

Biggest Gainers: Ocean Rig UDW Inc. (NASDAQ:ORIG) up 9.13%, Goldfield Corp (NYSEMKT:GV) up 8.43%.

Biggest Losers: Mastech Digital Inc (NYSEMKT:MHH) down 2.31%, Network-1 Technologies Inc (NYSEMKT:NTIP) down 1.14%.

The Acquirer’s Multiple® Valuation Ratio

All stocks in the TAM Deep Value Stock Screeners are picked using The Acquirer’s Multiple® valuation ratio. The ratio examines several financial statement items that other multiples like the price-to-earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization and capital expenditures.

The Acquirer’s Multiple® is calculated as follows:

Enterprise Value / Operating Earnings

The Acquirer’s Multiple® was developed by Tobias Carlisle who is the founder and Chief Investment Officer of Carbon Beach Asset Management LLC. He is also the author of Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014, Wiley Finance), and Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012, Wiley Finance). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law.

Stocks mentioned include: (NASDAQ:ADSK), (NASDAQ:LTRPB), (NYSE:SBGL), (NYSE:FL), (NYSE:BAC), (NASDAQ:FTR), (NYSE:TECK), (NYSE:TX), (NYSE:FL), (NYSE:LB), (NASDAQ:UEPS), (NYSE:SDLP), (NYSE:SBGL), (NASDAQ:KIRK)(NASDAQ:ORIG), (NYSEMKT:GV), (NYSEMKT:MHH), (NYSEMKT:NTIP),



About the Author

The Acquirer's Multiple
The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates. It examines several financial statement items that other multiples like the price-to-earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization. The Acquirer’s Multiple® is calculated as follows: Enterprise Value / Operating Earnings* It is based on the investment strategy described in the book Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations, written by Tobias Carlisle, founder of acquirersmultiple.com. The Acquirer’s Multiple® differs from The Magic Formula® Earnings Yield because The Acquirer’s Multiple® uses operating earnings in place of EBIT. Operating earnings is constructed from the top of the income statement down, where EBIT is constructed from the bottom up. Calculating operating earnings from the top down standardizes the metric, making a comparison across companies, industries and sectors possible, and, by excluding special items–earnings that a company does not expect to recur in future years–ensures that these earnings are related only to operations. Similarly, The Acquirer’s Multiple® differs from the ordinary enterprise multiple because it uses operating earnings in place of EBITDA, which is also constructed from the bottom up. Tobias Carlisle is also the Chief Investment Officer of Carbon Beach Asset Management LLC. He's best known as the author of the well regarded Deep Value website Greenbackd, the book Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014, Wiley Finance), and Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012, Wiley Finance). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law. Articles written for Seeking Alpha are provided by the team of analysts at acquirersmultiple.com, home of The Acquirer's Multiple Deep Value Stock Screener. All metrics use trailing twelve month or most recent quarter data. * The screener uses the CRSP/Compustat merged database “OIADP” line item defined as “Operating Income After Depreciation.”